Operations outside US drive Kambi Q1 growth
Kambi's revenue amounted to €21m ($23.5m) for Q1 2019, an increase of 28% year-on-year, with operator turnover growing 46%.
Although Kambi continued its US expansion in the period, its CEO Kristian Nylén attributes the majority of the company’s turnover growth to operations outside the country.
Operating profit was €2.6m, with a margin of 12.4% and results after tax totalled at €2m, a 33% increase.
Earnings per share rose 29% to €0.066 from €0.051.
Kambi signed two new customers in Q1; Rhinoceros Operations, parent company of German-facing Mybet, and Connecticut-based Mohegan Gaming & Entertainment (MGE).
Sports betting has yet to be regulated in the north-eastern state, but with bills in progress, Kambi expects the vertical to be available to players this year.
MGE is Kambi’s first Native American customer and with 40% of the US’ casino gaming revenue generated at Native American casinos, Nylén is understandably keen to add more to the supplier’s roster.
The supplier also launched three on-property sportsbooks in Pennsylvania with Greenwood Gaming & Entertainment and expects online sports betting to be permitted there shortly.
Figures from the state regulator, the Pennsylvania Gaming Control Board (PGCB), show more than 82% of the state’s sports betting revenue was generated by bettors on Kambi’s platform.
Nylén said: “As expected, the regulation of sports betting state-by-state has been a slow process but one which may pick up in the coming months as states push for legislation ahead of the start of the next NFL season in September.
“Of more importance is that states regulate the right way. As we have seen in New Jersey, where mobile betting represents 80% of the market, online regulation is key if states are to channel players away from the illegal market into a safe and regulated environment.”
As US operations expand, Kambi, headquartered in Malta, will open its Philadelphia office in Q2.
Nylén will be speaking exclusively to Gambling Insider on the results. The interview will follow shortly.
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