Kambi Group is hitting the breaks on financial targets for 2027.
The global sports betting service provider’s board of directors decided to withdraw revenue predictions released by the company in January.
The Kambi board determined that despite progress in areas it can control, slow regulation progress in key markets is expected to delay future profits.
Kambi originally projected revenue of two to three times the fiscal year 2022 numbers, roughly €330 to €500 million. EBIT figures were predicted to be more than €150 million with a potential global addressable market increase to approximately €50 billion GGR by 2027.
Those target figures were accrued following a review of underlying assumptions that included better regulation expectations, continued partner retention and acquisition, and the successful execution of its product strategy.
New leadership
Kambi, which provides sportsbook platforms for Bally’s, Kindred Group, and Rush Street Interactive, LeoVegas, among others, is undergoing major changes.
The announcement of a revenue course correction comes days after Kambi tabbed former Sportradar executive Werner Becher to replace Kristian Nylén as CEO.
“I join Kambi at an exciting time in its evolution, as it continues to open up its service and widen its addressable market,” Becher said. “I am excited to work closely with the Board, our executive team, and our talented employees across the world to deliver on the fantastic opportunities ahead of us.”
Moving the target
Kambi saw a slight first-quarter revenue drop year-over-year from €44.0 million to €43.2 million.
Becher will oversee growth in the platform’s AI-pricing division Tzeract, which provides a Bet Builder to European sportsbook kwiff. He’ll also evaluate Kambi’s focuses before a new revenue projection is released at an unannounced date.
“The Board will now focus its attention on providing Becher with its full support in executing on the Company’s long-term strategy and extending Kambi’s lead as the world’s leading sports betting provider,” Kambi said in a statement. “The Board believes that Kambi should have in place long-term financial targets.”
