Kambi eyes South America as profits rise
Sports betting technology provider plots push into LatAm market as quarterly profit more than doubles sequentially
Sportsbook platform provider Kambi is targeting growth in South America after strong growth in Europe helped its operating profit more than double sequentially in the three months ended 30 September.
The firm, which supplies the likes of Unibet, Paf and 32Red with sportsbook platforms, posted EBIT of 0.9m, more than double the 0.4m profit it posted in Q2 in the period taking its total EBIT for the first nine months of the year to 1.6m.
Revenues increased 68% year-on-year for Q3 to 9.5m on the back of a strong performance during the closing stages of this summer’s World Cup and a number of new launches, most notably 888’s decision to roll out its Kambi-powered sportsbook to the Spanish market in August.
Operating expenses at the firm were up almost 20% year-on-year to 8.6m, which was largely attributed to a planned increase in full time employees including development teams and sales staff.
Kambi said it had established a sales team in South America ahead of a planned push into the market in order to broaden its focus away from its core European business.
“Kambi has followed the South American market closely during the last two years and as many jurisdictions are coming closer to re-regulation, this is the right time to add resources closer to the market,” the company stated.
The supplier also said it will focus on development of its in-play product after witnessing an increase in demand. Trials with point-by-point tennis betting and particular short-term football markets during the World Cup were considered a success and “instant betting” has since been rolled out across several other sports on a trial basis.
Despite falling 5% in early morning trading Kambi’s share price currently stands at SEK66, more than double its listing price of SEK29.5.