888 announces “long-term” extension to Kambi sportsbook deal
Deal announced alongside Kambi’s Q2 results with revenues up 3% year-on-year
888 Holdings has announced a “long-term” extension to its sportsbook provision deal with Swedish supplier Kambi.
The multi-year contract extension will see Kambi continue as the main technology provider for the 888sport brand.
Kambi CEO Kristian Nylén said: “We are delighted to continue building on the successful partnership we have had with 888sport over the last four years and look forward to further contributing to its future growth.
“During this time, 888sport has seen a massive increase in its sportsbook revenues, showcasing the quality of the Kambi Sportsbook services.”
888sport has been powered by Kambi since May 2013, at which point the operator’s annual sports revenues totalled €6m compared to €45m in 2016.
The contract announcement comes on the same day as Kambi’s Q2 results, which saw the provider post 3% year-on-year growth in revenues to €14.1m and a 16% boost in operator turnover.
Kambi operating profit (EBIT) for the quarter was €0.3m, down from €2m a year ago, although the firm said the 888 deal had cut its H1 revenue and EBIT by €1m.
“I am pleased to report that Q2 was a successful trading period for Kambi,” said Nylen.
“Not only has the day-to-day performance of the business remained strong, but Kambi has managed to further strengthen its foundations for future growth.
“We believe the longer term benefit from securing 888sport for years to come, far outweighs the shorter term impact the re-negotiation has on our financial results.”