Kambi will assist with DraftKings’ migration to new platform technology by September 30, 2021, the company has announced.
A deal has been struck between the companies that will secure Kambi full revenue up to the end of the partnership, before DraftKings switches to use SBTech software.
However, Kambi also stated that “DraftKings is permitted to leverage its proprietary technology, in full or part, prior to that date.” The new agreement stipulates that the current partnership will not reach new jurisdictions beyond January of next year.
Kristian Nylén, Kambi’s CEO, said: “Since partnering in June 2018, the Kambi-DraftKings relationship has proven to be highly rewarding for both parties, delivering first-class sports betting experiences to players across more states than any other sportsbook, and establishing Kambi and DraftKings as true leaders in their respective fields.
“The agreement we’ve announced today works to secure a strong revenue stream for Kambi for the next 15 months, while our growing and exciting portfolio of partners leaves me with no doubt that Kambi is well placed to extend its leadership position over the months and years to come.”
In its latest set of results, Kambi saw its revenue fall by 32 per cent to €14.8m for Q2 2020 (Q2 2019: €21.6m), while there was an EBIT loss of €3.4m for the same period, compared to a profit of €2.5m in the same period during 2019.
Result after tax amounted to -€3m (€1.6m) during Q2 2020 and earnings per share were -€0.09 (€0.052).
Nylén said: “After what has undoubtedly been a testing period for Kambi, as it has for everyone in our sector, I’m proud of the resilience and underlying strength we have displayed in recent months, which bodes well for our future. Of course, the financial numbers published today aren’t as I would have hoped back when we were planning for 2020, but they do reflect a business able to deliver when faced with both adversity and uncertainty.”
