### Kambi’s 2024 Financial Overview
Kambi’s revenue for the 12 months ending on 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), according to its earnings released today. This represented a modest increase of 1.8% compared to the previous year.
Although the growth was marginal, CEO Becher described the period as a “transitional” and “transformative” year for the supplier. Becher began his tenure in July, succeeding long-serving Kristian Nylén, whose departure was confirmed in January.
Following Nylén’s announcement of his exit, he expressed dissatisfaction with Kambi’s performance in 2023. Despite an increase in revenue, net profit and EBITDA were lower year-on-year.
In contrast, this year Becher seemed more optimistic about the group’s achievements over the past 12 months, highlighting the supplier’s efforts to diversify its revenue streams recently.
However, Becher did issue a warning for 2025 as particular partners, especially Kindred and LeoVegas, transition away from Kambi’s turnkey sportsbook. He also pointed out the recently approved temporary VAT in Colombia as a potential concern for the group.
“This year won’t be without significant challenges, with 2025 presenting a particular set of headwinds, which we expect to ease going forward,” Becher stated.
“As previously announced, we are actively taking action to manage costs and are continuing to diversify our revenue streams through product expansion.”
### Marginal Growth for Kambi
Focusing on 2024, marginal revenue growth was supported by several factors. These included the addition of Hard Rock Digital and Rei do Pitaco to Kambi’s Odds Feed+ services, as well as Kwiff adopting its Bet Builder services.
Kambi also added several partners to its turnkey sportsbook product including KTO Group, Choctaw Nation, VIP Play Inc and Week Creek Hospitality during the year. Furthermore, key partners Rush Street Interactive and Sun International renewed contracts, as did Penn Entertainment for its retail sportsbook network.
Nonetheless, challenges remained, such as the impact of Penn’s online migration initiated in 2023. Kambi also encountered new deposit limits in the Netherlands and new gaming taxes in Sweden, while partner Kindred Group exited various markets.
### Bottom-line Improvement in 2024
EBITDA increased by 5.5% to €59.7 million while operating profit (EBIT) remained flat at €20.1 million with a margin of 11.4%.
In terms of expenses, total costs rose by only 2% year-on-year. However, restructuring costs added to Kambi’s outgoings, resulting in a 5% decline in pre-tax profit to €19 million.
On the positive side, income tax payments were lower in 2024, leading to improved bottom-line figures. Net profit for the year totaled €15.4 million, a 3.4% increase from the previous year.
The company closed the year with a cash flow of €25.9 million, representing a 73% increase compared to 2023.
### Mixed Bag for Kambi in Q4
In the final quarter of 2024, revenue climbed 0.5% year-on-year to €44.5 million. During this three-month period, Kambi gained several new clients, including Wind Creek Hospitality and VIP Play Inc.
However, total expenses rose by 3.8% to €38.5 million, and after factoring in other costs, including restructuring expenses, pre-tax profit fell 40% to €4.5 million.
Kambi paid €519,000 in income tax, resulting in a net profit of €5.1 million in Q4, a decrease of 7.3%. In addition, EBITDA fell by 5.9% to €16 million.
### What Can We Expect in 2025?
In addition to its 2024 performance, Kambi offered insight into the expectations for the coming year.
The headline guidance is EBITDA in the range of €20 million to €25 million, which would be close to the €25.3 million reported in 2024. Costs are expected to rise in some areas, but as these will be passed on to partners, Kambi indicated this should not impact EBITDA.
Kambi anticipates revenue tailwinds from organic growth within the operator network, notably full-year revenue contributions from LiveScore and Svenska Spel.
However, revenue may be affected by certain headwinds, such as the end of transition fees received during 2024 and the proposed temporary VAT on deposits in Colombia.
“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,” Becher commented.