Kambi Group Reports Year-on-Year Growth Despite Loss of Penn Entertainment

During the third quarter, Kambi Group saw significant growth across its divisions, overcoming the impact of losing Penn Entertainment as a client. Excluding the impact from Penn’s online migration, the technology supplier saw a 9% increase in underlying turnover. Despite the termination of its agreement with Kambi, Penn Entertainment’s departure did not hinder Kambi’s overall financial performance.

The company reported a 15% year-on-year revenue growth, which was boosted by non-recurring fees related to Penn and Shape Games. Revenue for the third quarter amounted to €42.1m, compared to €36.7m in the same period in 2022. Kambi also completed 24 partner launches during Q3, including eight in the US for new partner Bally’s Corporation. This expansion extended Kambi’s reach in Latin America with launches in Brazil and Argentina and furthered its presence in the UK in partnership with LeoVegas Group.

Despite the migration of Penn, Kambi’s geographical diversification remained healthy, with the Americas contributing 50% of total operator GGR, Europe contributing 47%, and the Rest of the World contributing 3%. The company expects that its new deals with Svenska Spel and LiveScore Group will drive revenue from the midpoint of the following year, further contributing to its growth.

Expenses for the third quarter increased by 14.3% to €37.5m, although this was lower than the guidance previously issued, attributed to reduced data supplier costs and lower staff-related costs. EBITDA during the period increased by 3% to €13.9m, with EBITA also increasing due to higher revenues.

CEO Kristian Nylén expressed satisfaction with the company’s performance during the quarter, particularly highlighting the signings of Svenska Spel and LiveScore Group as “landmark agreements” that will significantly impact the company’s long-term strategic goals. He also expressed confidence in Kambi’s ability to achieve its 2027 financial targets of revenue of 2-3 times FY2022 levels and EBIT in excess of €150m.

Nylén stated, “The long-term picture looks bright and we remain confident in our ability to deliver on our aims and cement Kambi’s position as the number one sportsbook supplier in the world.”

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