Kambi Group PLC (Kambi) reported year-over-year gains in revenue for the second quarter and first half of the year in its Q2 financial summary.
Revenue amounted to €45.7 million for the second quarter of 2024 and €88.9 million for the first half of 2024, both improvements from the €42.9 million and €86.9 million marks for the same periods last year, respectively.
The sports betting services company also achieved 13.5% operating profit of €6.2 million in Q2, up from 67% year-over-year while maintaining a margin of 11.9% profit margin for the first half of 2024 to bring in €10.6 million total.
Shareholders also saw year-over-year growth in earnings per share too, which rose to €0.155 from €0.083. The overall first-half growth locked in €0.260 per share, a nice bump from 1H2023’s €0.190.
Network effect
Kambi’s technology supports 40+ customers around the sports betting industry including major players like Bally’s, Kindred, and Rush Street Interactive.
Choctaw Nation, one of the largest Native American tribes in the United States, launched a partnership with Kambi in April to provide its sports betting technology and services for a turnkey sportsbook at Choctaw Casinos & Resorts and online.
Choctaw’s properties span southeastern Oklahoma, with its flagship resort located near the Texas border. Although sports betting is still illegal in Oklahoma, the Kambi-Choctaw deal has the potential to expand into multiple states pending regulatory approvals. It also positions the tribe to take advantage of the opportunity if and when legal sports betting in Oklahoma becomes a reality.
“In April, we strengthened our US and tribal network through an exclusive US-wide partnership with Choctaw Nation of Oklahoma, operator of Choctaw Casinos & Resorts," commented outgoing Kambi CEO Kristian Nylén. "Choctaw owns a variety of gaming and hospitality destinations throughout southeastern Oklahoma, close to the Texas border and is the exclusive casino and resort partner of the Texas Rangers, Major League Baseball’s World Series Champion.
"While Texas has yet to regulate sports betting, previous attempts to pass legislation would have seen licenses tethered to the state’s sports franchises. We expect this will be the case again next year when we anticipate another effort to bring regulated sports betting to what is one of the largest states in the US.”
Changing of the guard
In January, Nylén announced his intention to step down after 14 years leading the company. Industry veteran Werner Brecher was announced as Nylén's successor on July 1.
“With vast experience from the technology and gaming industries, most recently a senior executive at global sports data supplier Sportradar, I have every confidence Werner is the right person to lead Kambi into a new era of multi-product provision,” said Nylén of the appointment.
Brecher will take the helm as of July 25 right on the heels of the company backing off its financial targets for 2027.
Kambi originally projected revenue of two to three times the fiscal year 2022 numbers, roughly €330 to €500 million.
According to the Q2 report, the company’s board of directors withdrew its 2027 financial targets following a review of the underlying assumptions as slower-than-expected progress towards regulation in certain key markets would likely delay revenue.
