Premium sports betting service provider Kambi Group plc reported earnings of €0.107 per share for the first quarter of 2024 – the same as it earned for Q1 2023. Meanwhile, revenues for the quarter were down just a tad, coming in at €43.2 million versus last year’s €44.0 million.
While flat earnings aren’t usually a cause for celebration, Kambi’s financial consistency is noteworthy given the flux both within the company and the industry.
“For the first quarter of the year we posted revenue of €43.2 million, which was in line with our expectations, while expenses were at the lower end of our guidance at €39.0 million," said Kambi’s CEO Kristian Nylén.
Kambi is adjusting to Penn Entertainment’s migration to an in-house sports betting solution. The partnership between Penn and Kambi was set to expire in July. But the companies recently extended the agreement through December 2025. Penn has already transitioned its online sports betting business but will take more time to migrate its retail business.
New business
Meanwhile, Kambi’s new partnership with LiveScore Group is starting to bear fruit.
“A key highlight of the quarter was the launch of LiveScore Group’s new Kambi-powered sportsbook in Nigeria, followed swiftly by a launch in the Netherlands," said Nylén. "LiveScore was a pivotal signing for Kambi in 2023 and these launches mark crucial milestones toward our long-term objectives. We look forward to additional launches in the near future, including in its core UK market, ahead of a busy summer of sports with Euro 2024 and Copa America both set to commence in June.”
Additionally, Tzeract, Kambi’s AI-powered division, is partnering with kwiff to provide its Bet Builder product to the European sports betting operator. The partnership, announced Tuesday, is Tzeract’s first commercial agreement since launching as a standalone division.
Kambi also said it would be reviewing its 2027 financial targets given the slowdown of sports betting legalization across the U.S. It now appears that California is unlikely to legalize before 2027, which impacts Kambi’s 2027 revenue estimates by roughly €20 million to €25 million.
Nonetheless, the company expressed optimism for the coming years.
"We have continued to build solid foundations for the future. Our commitment to pushing the boundaries of product excellence and innovation, as highlighted by the development of our modular odds feeds, is positioning Kambi as a leader in shaping the future of sports betting technology,” said Nylén.
Earlier this year, Nylén announced his intention to step down after leading the company for 14 years. Nylén will remain with Kambi, however, moving to the Board of Directors once a successor has been appointed.
