**Kambi’s 2024 Revenue and Future Prospects**
Kambi’s revenue for the 12 months ending 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), as reported in their earnings release today (26 February). This represents a slight increase of 1.8% compared to the previous year.
Although the growth was marginal, the CEO described the year as both a “transitional” and “transformative” period 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 departure, he expressed dissatisfaction with Kambi’s performance in 2023. Despite the increase in revenue, net profit and EBITDA were lower compared to the previous year.
This year, however, the CEO displayed a more positive outlook regarding the group’s accomplishments over the past 12 months, noting the supplier’s efforts to diversify its revenue streams in recent months.
Nevertheless, the CEO issued a caution for 2025 as some partners, particularly Kindred and LeoVegas, are transitioning away from Kambi’s turnkey sportsbook. He also highlighted 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,” the CEO 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**
In 2024, marginal revenue growth was driven by several factors. These include 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 expanded its turnkey sportsbook product to several partners, including KTO Group, Choctaw Nation, VIP Play Inc, and Week Creek Hospitality over 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.
Nonetheless, challenges such as the impact of Penn’s online migration initiated in 2023 were present. 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 steady on the previous year at €20.1 million at a margin of 11.4%.
Total costs were only 2% higher year-on-year. However, restructuring costs contributed to increased expenses, 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 a better bottom line. Net profit for the year amounted to €15.4 million, a 3.4% improvement on the previous year.
The supplier concluded the year with a cash flow of €25.9 million, marking a 73% increase from 2023.
**Mixed Bag for Kambi in Q4**
In the final quarter of 2024, revenue rose 0.5% year-on-year to €44.5 million. During this three-month period, Kambi acquired several new clients, including Wind Creek Hospitality and VIP Play Inc.
However, total expenses increased by 3.8% to €38.5 million, and after factoring in other costs, including restructuring expenses, pre-tax profit fell by 40% to €4.5 million.
Kambi paid €519,000 in income tax, resulting in a net profit of €5.1 million for Q4, a decrease of 7.3%. Additionally, EBITDA declined by 5.9% to €16 million.
**What Can We Expect in 2025?**
Alongside its 2024 performance, Kambi provided insights into what could be anticipated in the coming year.
The main guidance is for EBITA to range between €20 million and €25 million, close to the €25.3 million recorded in 2024. Costs are expected to rise in some areas, but these will be passed on to partners.