Kambi posts 48% Q3 revenue rise as Europe overtakes the Americas

Kambi has posted a 48% year-on-year (YoY) increase in revenue for Q3 2021. The sports betting supplier recorded €41.6m (£35.1m) in Q3 revenue, up from the €28.1m posted in Q3 2020. Following the revenue performance in Q3 2021, Kambi has outstripped its entire 2020 revenue of €117.7m during the first nine months of 2021 with €127.5m. Kambi also recorded a 125% annual leap in EBITDA to €14.7m in Q3 2021, up from €6.5m in Q3 2020, with an increased operating margin of 35.4%, compared to 23.3% last year. Elsewhere, post-tax profit jumped 135% from €5.1m in Q3 2020 to €11.9m in Q3 2021. Breaking down Kambi’s partnering operator gross gaming revenue (GGR) by geographical area, its historical European heartlands outperformed the Americas segment for the first time since Q3 2020. Operator GGR from Europe represented 55% of the total, compared to 45% from the Americas. During Q3, one of Kambi’s US partners, Penn National Gaming (PNG), completed the acquisition of Canadian media company theScore, which in turn plans to develop its own sportsbook technology and eventually migrate away from Kambi. Kambi is also set to lose its partnership with DraftKings as the Boston-based operator transitions onto its in-house SBTech platform. Kambi revealed DraftKings accounted for around 30% of Kambi’s total Q3 revenue. However, operator turnover still increased 10% YoY when removing the impact of DraftKings from the Q3 2020 and Q3 2021 reporting periods. Discussing PNG’s acquisition of theScore, which is yet to build its proprietary sportsbook technology, Kambi CEO Kristian Nylén said: “It’s incredibly difficult, as well as costly, to build, maintain and continue to develop a first-class sportsbook, as we’ve seen with unsuccessful efforts of others in the past. “In the meantime, we’ll continue to support their growth with our fantastic platform and service we have built over many years, which remains very much of interest to our growing list of prospective partners,” he added. Looking to the future, Nylén commented: “In summary, we’ve performed well and the future looks bright. We currently have a sales pipeline as strong and varied as I’ve known it. As the global trend of regulation continues, we are in a great position to capitalise on future opportunities as and when they arise.”