Kambi sees Q1 revenue grow 33% despite sports shutdown
Malta-headquartered supplier also continues US expansion with penetration in three new states
Kambi has recorded Q1 2020 revenue of €27.9m, up 33% from Q1 2019 (€21m), despite the impact of the coronavirus pandemic on the global sporting schedule.
The growth in revenue was driven by a 27% increase in operator turnover from Q1 2019 to Q1 2020.
Kambi’s Q1 EBITDA skyrocketed 162% year-on-year from €2.6m in 2019 to €6.8m in 2020, with an operating margin of 24.5%. Post-tax profit more than doubled from Q1 2019 (€2m) to Q1 2020 (€4.8m).
Kambi noted that despite the coronavirus impacting approximately 20% of the trading period in Q1, trading performance up to and including 12 March saw average daily operator turnover up 47% on Q1 2019 and 7% on Q4 2019.
Trading after 12 March saw less traditional sports drive Kambi revenue, with table tennis accounting for a third of all turnover from mid-March onwards.
In light of the coronavirus pandemic, Kambi has detailed several cost saving initiatives to “ensure it is operating as efficiently as possible during this current period”.
Around 25% of UK staff have been furloughed using the government scheme, while in Sweden staff are working 60% of their hours and are receiving a salary subsidy from the government.
Kambi CEO Kristian Nylén thanked his staff for their flexibility during the pandemic.
Nylén said: “I must thank our people for the resilience they have shown during this difficult period. I feel proud of their commitment to our partners to deliver a quality service under the circumstances.
“We owe it to all our employees, partners and investors to ensure we are in the strongest position possible to pick up where we left off when sports do resume.
“I’m confident the cost saving measures we’ve introduced in recent weeks, our strong balance sheet, and the flexibility we have retained to be back running at 100% capacity almost immediately,” he added.
In terms of partner launches, Kambi expanded into three new US states in Q1 2020 – Mississippi, Illinois and Michigan – taking its presence to 10 states in total.