Kambi Group has recorded a strong set of results, with a 33 per cent increase in year-on-year revenues to €19m during the final quarter of 2017.
In a trading update, the sports betting specialist said it was boosted by a run of favourable sporting results, beginning in Q3 and continuing into Q4 with greater regularity, helping create an operator trading margin of 9.7 per cent.
The Nasdaq First North-listed company signed long-term contract extensions with LeoVegas, Paf and Napoleon Games and also sealed a multi-channel deal with South Africa-based casino group Sun International – the eighth consecutive quarter in which Kambi has added at least one new customer.
Operating profit for the final quarter was €5m, with a margin of 26 per cent. Over the full year, Kambi’s revenue was €62.1m, with operating profit of €7.7m at a margin of 12 per cent.
“While the Q4 result is pleasing, it is important to view operator trading margin with a long-term perspective,” a Kambi spokesperson said. “Our 12-month operator trading margin was 7.4 per cent, a figure more in line with our previously communicated expected range of 6.5-7 per cent. Therefore, just as we weren't overly concerned by below average margins in the first two quarters of 2017, we are not getting carried away with the higher than average margins of recent quarters.
“A consequence of a higher operator trading margin is lower operator turnover growth – when results favour operators, as they frequently did in Q4, players have less money in their betting accounts to play with. Despite this suppressing factor, operator turnover grew year-on-year.”
