Kambi Q2 revenues up 23% with profits flat
Shares slip 6% in early trading with operator turnover slightly behind consensus estimates
Sports betting supplier Kambi has revealed a 23% year-on-year rise in its group revenues for the second quarter of 2019, with revenues hitting €21.6m (£19.3m).
Operating profits during Q2 climbed slightly to €2.5m, with the business operating at a margin of 11.7%, while profits after tax fell by €0.1m to €1.6m during the same period.
Kambi’s operator turnover climbed 26% during Q2 2019, albeit down 2% quarter-on-quarter, and slightly behind consensus estimates.
The firm’s number of contracts rose by 80 during the quarter to 387. Operator trading margin rose to 8.2% during the quarter from a Q2 2018 high of 7.8%.
Kristian Nylén, Kambi Group CEO hailed the “solid financial growth” the business had made during Q2 2019, despite the absence of big sporting events such as the FIFA World Cup.
Kambi concluded several new business deals during the quarter, including a deal to provide sportsbook services for the Moldovan betting monopoly and newly formed sports betting company Betwarrior.
The operator also extended its current partnerships with Rank Group, with the period also seeing the launch of its US sportsbook, in partnership with Rush Street Interactive.
Addressing the US market, Nylén highlighted “significant business opportunities” for Kambi.
In June, the firm opened its first US facing office in Philadelphia, which houses around 30 employees in largely customer support and risk management roles.
“Looking back over the past 12 months, I’m proud to say we’ve built a robust US-facing business with a fantastic portfolio of partners, and I continue to have great confidence in our future prospects,” Nylén added.
Kambi’s share price was down 6% in early trading on the Nasdaq Nordic exchange.