In its trading update, Kambi said it expects its Q4 2020 revenue to rise by up to 80% year-on-year, after a strong quarter of sporting activity.
The sports betting supplier is expecting Q4 revenue to reach between €46m ($56.4m) and €48m, up from €26.7m in the same period in 2019, after what it described as strong operator trading margin and continued momentum in operator turnover.
It also mentioned a return to a packed sporting schedule across key markets, including a full fixture list of European football, which should see operator trading margin of 9%, higher than the expected average long-term margin of between 7 and 8%.
Q4 expenditure is expected to rise from €20.5m in 2019 to between €24m and €25m, which the supplier says is higher than previous guidance due to additional social security costs in relation to its share option programmes, driven by a rise in Kambi’s share price.
EBIT for Q4 is estimated to be in the range of €21m to €24m, up from €6.2m in the same period a year prior, and between €31m and €34m for full-year 2020, a stark rise from €14.7m recorded in 2018.
If Q4 revenue reaches the higher end of the estimations, that would see Kambi’s FY 2020 revenue increase by 29% from 2019 up to €118.8m, despite the heavy disruption and suspension to the sporting calendar.
In Q3, Kambi saw its revenue increase 22% from the previous year to €28.1m following the return of sport, after a 32% yearly decline for Q2, down to €14.8m at the height of worldwide lockdown.