Weak fourth-quarter margin hit Kambi’s closing year results

ic Nasdaq-listed sports betting platform and software supplier Kambi Group is the latest industry stakeholder to post its Q4 2016 results, revealing the impact that Decembers customer-friendly sporting results had.

Revenue amounted to €14.3m for the fourth quarter and €56m for the full year 2016, an increase of 17%.

Operating profit (EBITA) for the fourth quarter of 2016 was €1.8m, with a margin of 13%, and €8.8m for the full year 2016, with a margin of 16%.

Whilst profit after tax amounted to €7.5m for the full year, the fourth quarter of 2016 only reaped €1.2m. Despite the negative closing results for the fourth quarter, Kambi governance says it was pleased with the companies’ efforts after a tough closing to its full-year performance.

Kambi CEO, Kristian Nylén comments: “As widely reported across the industry, December produced many events with player-friendly outcomes. For our operators, these resulted in lower average margins in the quarter, which in turn, together with increases in gaming-related taxes, impacted on Kambi’s revenues.

“Despite this, I’m very pleased to report that our operators continued to demonstrate the underlying strength of the Kambi Sportsbook and reported solid increases in turnover, even when compared to a strong Q4 2015.

“We will continue to invest in our world class Sportsbook offering, to maintain our position as the highest quality service in the market, in an evolving market landscape. We are confident in our strategy of investing in people and technology to create the best Sportsbook on the market.”

Nonetheless, shares in the Swedish company fell by nearly 7% in Stockholm early on Tuesday following the publication of its results.