Global sports betting supplier Kambi finished 2018 on a high, with full-year revenues up 23 per cent and operating profit increasing by 65 per cent year-on-year, in a 12-month period that saw the company sign eight new customers and take the first legal online sports bet in the US, post-PASPA.
Kambi’s revenue amounted to €21.7m (€19m) for Q4 2018, and €76.2m (€62.1m) for the period January to December 2018.
Operating profit (EBIT) for the fourth quarter was €4.2m (€5.0m), with a margin of 19.2 per cent (26.3 per cent), and €12.7m (€7.7m) for the full year, with a margin of 16.7 per cent (12.4 per cent). Profit after tax for 2018 was €9.8m (€5.9m).
A strong financial performance in Q4 2018 saw operator turnover growth at 42 per cent, with Kambi revenue growing 14 per cent, while operator trading margin of 8.5 per cent was above expectation, although below the 9.7 per cent margin in Q4 2017.
Kambi’s CEO Kristian Nylén said: “Bearing in mind the comparative period in 2017 delivered Kambi's highest ever operator trading margin, our Q4 2018 performance is particularly pleasing and highlights the positive momentum we have built within the business.
“While there were many positive aspects to our Q4 2018 performance, the highlight was Kambi's retail delivery. During the quarter, Kambi successfully launched on-property sportsbooks with DraftKings at the Resorts Casino in New Jersey and with Rush Street Interactive in two casinos in Pennsylvania.
“Furthermore, much of the planning and preparation work for the launches of ATG in 2,000 retail stores in Sweden and two properties owned by new customer signing Greenwood Gaming & Entertainment in Pennsylvania, took place in Q4, enabling their successful launches in January 2019.
“With the US market high on Kambi's priority list, our ability to demonstrate our high-quality on-property Sportsbook and prompt time-to-market leaves us well-placed moving forward, particularly considering the emphasis US operators and state regulators place on the retail channel. When also factoring in the early success we have had online in New Jersey, I'm not surprised Kambi is now seen as the leading multi-channel sports betting supplier in this burgeoning market.”
