Kambi Group has unveiled its financial performance for Q4 2023, along with revenue guidance for the full year 2024.
The company reported revenue of €44.3m ($47.8m) for Q4 2023, reflecting a decrease of 23.44% from €57.8m in Q4 2022 – no doubt impacted by comparisons with the World Cup during Q4 last year.
For the full year 2023, Kambi's revenue amounted to €173.3m, showing a slight increase of 4.22% from €166.0m in 2022.
Operating profit (EBIT excluding Items affecting comparability) for Q4 2023 stood at €7.2m, representing a margin of 16.1%, down from €18.7m and a margin of 32.3% in Q4 2022.
For the full year 2023, operating profit was €20.0m, with a margin of 11.5%, compared to €34.8m and a margin of 20.9% in 2022.
Kambi's earnings before interest, taxes, and amortisation on acquired intangible assets (EBITA) for Q4 2023 were €8.5m, with a margin of 19.2%, down from €20.5 million and a margin of 35.4% in Q4 2022.
Similarly, for the full year 2023, EBITA was €25.2m, with a margin of 14.6%, compared to €37.6m and a margin of 22.7% in 2022.
The company's cash flow, excluding working capital and mergers and acquisitions, amounted to €5.5m for Q4 2023 and €15.0m for the full year 2023.
Kambi has provided revenue guidance for the full year 2024, estimating it to be in the range of €170m to €180m. Additionally, the company announced a share repurchase program running from 5 December 2023 to 21 May 2024, with a total of €2.8m allocated.
The Annual General Meeting (AGM) is scheduled for 21 May 2024, where the Board proposes no dividend payout.
Key highlights of Kambi's performance include a 6% underlying turnover growth, excluding the impact of Penn Entertainment's online migration. Despite a 2% decrease in revenue for Q4 2023, excluding a termination fee from Penn recorded in Q4 2022, Kambi recorded a 13% increase in full-year 2023 revenue.
The company also secured long-term sportsbook platform agreements with Svenska Spel and LiveScore Group and expanded its European sportsbook partnerships.
In November 2023, Kambi extended its sportsbook agreement with Penn Entertainment, safeguarding an important revenue stream until the end of 2025. This agreement covers 30 different properties across 13 US states. However, Penn Entertainment has announced its intention to develop proprietary technology, which will be migrated over its retail sportsbook products by the end of 2025.
Anders Ström, Kambi Chair of the Board, stated: “Following the announcement regarding our CEO succession in January 2024, the Board of Kambi has initiated the process of seeking a successor. The search is progressing according to plan, with the aim to finalise an appointment prior to the summer period. In the meantime, the company's progress towards its long-term strategic objectives remains uninterrupted.”
