Kambi’s revenue for the year ending 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), as revealed in its earnings today (26 February). This figure marks a modest growth of 1.8% from the previous year.
Despite the slight increase, Kambi’s CEO described the period as both a “transitional” and “transformative” year for the company. The CEO took over leadership in July, succeeding long-serving Kristian Nylén, whose departure was announced in January. Following his exit, Nylén expressed dissatisfaction with Kambi’s 2023 performance. Although there was an increase in revenue, net profit and EBITDA had declined over the year.
In contrast, the CEO expressed positivity about the company’s achievements over the past year, highlighting efforts to diversify revenue streams. However, he cautioned about 2025 when some partners, including Kindred and LeoVegas, plan to migrate away from Kambi’s turnkey sportsbook. Additionally, the recently approved temporary VAT in Colombia was flagged as a potential issue 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 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
In 2024, marginal revenue growth was driven by factors such as the addition of Hard Rock Digital and Rei do Pitaco to Kambi’s Odds Feed+ services, and Kwiff adopting its Bet Builder services. Kambi also welcomed several partners to its turnkey sportsbook product, including KTO Group, Choctaw Nation, VIP Play Inc, and Week Creek Hospitality. Furthermore, key partners Rush Street Interactive and Sun International renewed their contracts, as did Penn Entertainment for its retail sportsbook network.
Challenges included the ongoing impact of Penn’s online migration initiated in 2023. Kambi also confronted new deposit limits in the Netherlands and increased gaming taxes in Sweden, alongside Kindred Group’s exit from various markets.
## Bottom-Line Improvement in 2024
EBITDA rose by 5.5% to €59.7 million, while operating profit (EBIT) remained steady at €20.1 million, with a margin of 11.4%. Overall costs were only 2% higher year-on-year; however, restructuring expenses contributed to a 5% decline in pre-tax profit, totaling €19 million.
Conversely, reduced income tax payments in 2024 improved the bottom line, with net profit increasing by 3.4% to €15.4 million. The year ended with a cash flow of €25.9 million, marking a 73% rise from 2023.
## Mixed Results for Kambi in Q4
In the final quarter of 2024, revenue rose 0.5% year-on-year to €44.5 million. During these three months, Kambi added new clients, including Wind Creek Hospitality and VIP Play Inc.
However, total expenses increased by 3.8% to €38.5 million, and after accounting for other costs, including restructuring expenses, pre-tax profit plummeted 40% to €4.5 million. Kambi paid €519,000 in income tax, resulting in a net profit of €5.1 million for Q4, down 7.3%. Additionally, EBITDA decreased by 5.9% to €16 million.
## Looking Ahead to 2025
Alongside its 2024 performance, Kambi provided insight into expectations for the upcoming year. The company projected EBITA in the range of €20 million to €25 million, close to the €25.3 million reported in 2024. Costs are predicted to rise in some areas, but since these will be passed to partners, Kambi expects no impact on EBITA.
Kambi anticipates revenue growth driven by organic expansion within the operator network, especially from full-year revenue contributions by LiveScore and Svenska Spel. However, revenue may be affected by headwinds, such as the cessation of transition fees received in 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,” the CEO stated. “The foundations we are building are expected to support long-term growth.”