Kambi ends 2021 with 26% fall in Q4 revenue

Kambi reported a 26% year-on-year revenue drop during the final three months of 2021, with revenue slumping to €34.9m (£29.3m) during Q4. Releasing its update for Q4, the sportsbook supplier posted operating profit (EBIT) of €7.1m, corresponding to a margin of 20.2% and profits after tax of €6.1m. At a full-year 2021 level, Kambi reported a revenue increase of 38% year-on-year to €162.4m in 2021, with the firm generating operating profit of €57m (a 35.1% margin) and profits after tax of €46.4m for the period January to December 2021. These results come off the back of a very packed 2021 for the firm. Kambi completed 38 launches in the year, including three additional US states: Connecticut, Louisiana and Maryland. Kambi also announced new partnerships in Australia, the Bahamas and the Netherlands. The supplier received a mobile platform licence in New York and went live in the state in Q1 2022. Despite the Q4 dip, Kambi CEO Kristian Nylén remained positive about the firm’s longer term prospects: “The momentum we built in Q3 continued into Q4, helping us finish the year in fine fashion. “Looking back at Q4, growth from the Americas continued to be a key driver of our performance. The Americas region was responsible for 58% of operator GGR and is set to increase further with additional markets to regulate and go live this year across Canada, the US and South America.” “One of the key quarterly highlights was the receipt of our licence in New York State which, since launching a few weeks ago, has quickly grown to become the largest market in the country,” he added. Following the announcement, Kambi’s share price has climbed to a 2022 high of SEK263.8 (20.91), increasing by 1.77%. Former Kambi parent company Kindred Group threw a spanner in the works this week, announcing it would transition from the Kambi platform to its own in-house developed sportsbook from 2026. The pair concluded a new three-year agreement which maintains the sportsbook relationship through to the end of this transition period. The loss is Kambi’s second major client departure following Penn National Gaming’s announcement that it would also transition in-house from 2023. Kambi currently operates Kindred’s sportsbook in all global markets, except France where Kindred runs its own through a third-party provider.