Kambi FY24 results: Profit after tax up 3.7% despite Q4 decreases
Q4 results saw operating profit fall 17% and profit after tax drop 8%.
Key points:
– Kambi has released its Q4 and FY24 financial results
– Revenue was up in both Q4 and FY24, though this was only marginal in Q4
– Q4 saw some figures down year-on-year, though this did not greatly impact FY24 results
Kambi Group has released its Q4 and full-year results for 2024. In total, FY24 revenue came to €176.4m ($185.2m), up 2% year-on-year, while Q4 revenue came to €44.5m, up marginally from the €44.3m made this time last year.
Q4 results
Q4 adjusted EBITDA totalled €16m, down 6%, with operating profit taking an even more significant dip of 17% to €5.9m. Overall, profit after tax came to €5.1m, down 8%.
Indeed, across the board, costs and expenses were up, with staff costs increasing by over €1.3m, data supplier costs increasing by over €1.1m and other operating expenses increasing by €187,000. Amortisation on capitalised development costs were also up, increasing by €849,000, impacting overall profit after tax.
It is notable, however, that profit before tax was down significantly year-on-year, from €7.5m in Q4 2023 to €4.5m in Q4 2024. While income tax was able to soften the blow, at €519,000 compared to €1.9m last year, it seems increases in costs could not be mitigated by increased revenue.
This increase in revenue, and subsequent increase in costs, can be put down to the range of partnerships and launches Kambi engaged in during and after the quarter, which were primarily online. Odds Feed+ partnered with Hard Rock Digital in the US and Rei do Pitaco in Brazil, while its turnkey sportsbook solution was utilised by Bally’s in the US, Ontario, Ireland and the UK. It also partnered with Stake in Brazil and Paf in Sweden, while also seeing a land-based partnership with RSI in Washington.
Good to know: Earlier this month, Kambi was selected by FDJ to take over its contract with the Ontario Lottery and Gaming Corporation (OLG)
FY24 results
Looking at the year, Kambi reported revenue of €176.4m, up 2% year-on-year. Operating expenses remained relatively stagnant, up by less than €100,000 year-on-year to €116.7m, resulting in an EBITDA of €59.7m, up 5% year-on-year.
Operating profit came to $20.1m, up 0.5% year-on-year. However, due to factors including $1.3m in reconstructing costs, profit before tax fell 5.1% to €19m. A decrease in income tax was able to balance the books, down from €5.1m to €3.5m, resulting in profit after tax of €15.4m, up 3.7%.
Comments
On the results, CEO Werner Becher said: “The final quarter of 2024 was marked by significant achievements for Kambi. We concluded the year with new partner agreements across the majority of our product portfolio, initiated actions to address our cost base and delivered robust Q4 2024 financial results…
“However, this year won’t be without significant challenges, with 2025 presenting a particular set of headwinds, which we expect to ease going forward. These include certain partners, particularly Kindred and LeoVegas, migrating away from our turnkey sportsbook, as well as rising taxes such as the recently proposed temporary VAT in Colombia. As previously announced, we are actively taking action to manage costs and are continuing to diversify our revenue streams through product expansion. The financial guidance we have provided today reflects this, with EBITA (acq) in the range of €20m-25m for 2025.
“Looking further ahead, the strategic initiatives we have undertaken – advancing AI innovation, expanding our product portfolio and initiating a cost-efficiency programme – along with our various partner signings, provide a solid platform for the future. The foundations we are building today will enable us to emerge stronger, more agile and well-positioned for long-term growth.”
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