Key points:
- Revenue for Q3 2024 rose 2% to €43m, with January–September revenue reaching €132m
- Operating profit decreased by 21.7% year-on-year, with a margin drop from 11% to 8.3%
- New partnerships formed with Hard Rock Digital in the US and KTO Group in Brazil
Kambi Group reported a 2% year-on-year revenue increase, bringing Q3 2024 revenue to €43m ($46.3m).
For the January-to-September period, revenue grew by 2.3% to €132m. However, operating profit (EBIT) dropped by 21.7%, falling to €3.6m, with the EBIT margin decreasing to 8.3%.
Earnings per share for Q3 2024 were down 29.1% to €0.083, while January–September earnings rose by 12.7% to €0.345.
A €12m share repurchase program, effective from November 2024 to May 2025, was also announced to manage capital.
Key partnerships and expansions
Kambi entered new partnerships and renewals this quarter. A multi-year contract with Hard Rock Digital in the US will allow integration of Kambi’s new Odds Feed+ product, part of its modularisation approach.
Kambi also extended a partnership with Rush Street Interactive in the Americas and reached an agreement with KTO Group in Brazil, positioning for the regulated sports betting market launch in early 2025.
Market expansion and launches
The third quarter saw multiple platform launches. In the Americas, Kambi enabled Bally’s Corporation to launch operations in Maryland, Massachusetts and Tennessee.
European launches included 711 in the Netherlands and two brands for Paf in Spain. After the quarter, Kambi facilitated launches for Bally’s in Tennessee, Nexus’s Olimpo.bet in Peru and LeoVegas’s BetMGM in Sweden.
Operational metrics and financial performance
The company’s operator turnover index rose by 14%, reaching 687, driven by events such as UEFA Euro 2024 and Copa América.
The operator trading margin increased to 10.4%, influenced by favourable sports outcomes. Soccer was a primary revenue driver, with additional contributions from American football and tennis.
Product development and modularisation
Kambi advanced its modularisation strategy with the launch of Odds Feed+, providing operators access to betting odds through a single API. This aims to complement Kambi’s Managed Trading and Bet Builder products and has already attracted new clients, including Brazilian fantasy sports operator Rei do Pitaco.
Outlook and cost management
CEO Werner Becher said: “We are carefully considering our cost base and have identified areas in which we believe we can operate even more efficiently moving forward. This includes realising additional synergies from acquisitions and further assessing the use of artificial intelligence across the business to reduce our underlying costs.”
Good to know: Despite lower quarterly profit, Kambi projects full-year revenue between €172.5m and €175.5m, with total expenses estimated at €155m to €157m
In its Q2 2024 report, Kambi recorded a 6.5% year-on-year revenue increase to €45.7m, which showed a stronger growth rate than Q3.
During Q2, Kambi also strengthened its presence in the US by partnering with Choctaw Nation of Oklahoma and launching services with LiveScore in the UK and Svenska Spel in Sweden, supporting the company’s growth trajectory in multiple regions.
