Kambi’s revenue for the 12 months ending 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), as announced in its earnings released today (26 February). This represented a modest 1.8% increase over the previous year.
Although growth was marginal, Becher characterized the period as a “transitional” and “transformative” year for the supplier. The CEO began his tenure in July, succeeding the long-serving Kristian Nylén, whose departure was confirmed in January.
Following Nylén’s announcement of his exit, he voiced his dissatisfaction with Kambi’s performance in 2023. Despite an increase in revenue, net profit and EBITDA were lower compared to the previous year.
Fast forward to this year, and Becher expressed a more positive outlook regarding the achievements of the group over the past 12 months. He highlighted the supplier’s efforts to diversify its revenue streams recently.
However, Becher issued a warning for 2025, noting that certain partners, particularly Kindred and LeoVegas, are migrating away from Kambi’s turnkey sportsbook. He also cited the recently approved temporary VAT in Colombia as a potential challenge 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 said.
“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, along with Kwiff’s adoption of its Bet Builder services.
Kambi also expanded its turnkey sportsbook product by adding several partners, including KTO Group, Choctaw Nation, VIP Play Inc, and Week Creek Hospitality during the 12-month period. Additionally, key partners Rush Street Interactive and Sun International renewed their contracts, as did Penn Entertainment for its retail sportsbook network.
There were challenges, such as the impact of Penn’s online migration initiated in 2023. Kambi also faced 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%.
Spending-wise, total costs rose just 2% year-on-year. However, restructuring costs added to Kambi’s expenses, resulting in a 5% decrease in pre-tax profit to €19 million.
On the flip side, income tax payments were lower in 2024, which improved the bottom line. Net profit for the year totaled €15.4 million, a 3.4% improvement over the previous year.
The supplier ended the year with a cash flow of €25.9 million, reflecting a 73% increase from 2023.
## Mixed bag for Kambi in Q4
In the final quarter of 2024, revenue increased 0.5% year-on-year to €44.5 million. During this three-month period, Kambi onboarded several new clients, including Wind Creek Hospitality and VIP Play Inc.
However, total expenses rose 3.8% to €38.5 million, and after accounting for other costs, including restructuring expenses, pre-tax profit dropped 40% to €4.5 million.
Kambi paid €519,000 in income tax, resulting in a net profit of €5.1 million in Q4, down 7.3%. Additionally, EBITDA fell by 5.9% to €16 million.
## What can we expect in 2025?
In addition to its 2024 performance, Kambi provided insights into the upcoming year.
The headline guidance is EBITA ranging from €20 million to €25 million, close to the €25.3 million posted in 2024. Costs may rise in certain areas, but since these will be passed to partners, Kambi expects this will not impact EBITA.
Kambi anticipates revenue growth driven by organic expansion within the operator network, notably with full-year contributions from LiveScore and Svenska Spel.
However, revenue is also expected to face challenges, such as the conclusion 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 said.