Kambi’s revenue for the 12 months ending 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), according to its earnings released today (26 February). This represents an increase of 1.8% compared to the previous year.
Although the growth was only marginal, Becher described 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 exit was confirmed in January.
Shortly after announcing his departure, Nylén expressed dissatisfaction with Kambi’s performance in 2023. Even though revenue increased, net profit and EBITDA were lower year-on-year.
This year, Becher appeared more positive about the group’s achievements over the past 12 months. He highlighted the supplier’s efforts to diversify its revenue streams in recent months.
However, Becher warned of challenges in 2025 as certain partners, particularly Kindred and LeoVegas, plan to move away from Kambi’s turnkey sportsbook. He also mentioned the recently approved temporary VAT in Colombia 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,” 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
In 2024, marginal revenue growth was supported by several factors, including 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 welcomed several partners to its turnkey sportsbook product, including KTO Group, Choctaw Nation, VIP Play Inc., and Wind Creek Hospitality. Key partners like Rush Street Interactive and Sun International renewed contracts, as did Penn Entertainment for its retail sportsbook network.
However, challenges persisted, 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 rose by 5.5% to €59.7 million, while operating profit (EBIT) remained flat at €20.1 million with a margin of 11.4%.
Total costs increased by only 2% year-on-year. Nevertheless, restructuring costs added to Kambi’s expenses, causing pre-tax profit to decline by 5% to €19 million.
On a positive note, income tax payments were lower in 2024, which contributed to a better bottom line. Net profit for the year totaled €15.4 million, a 3.4% increase from the previous year.
The supplier 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 grew by 0.5% year-on-year to €44.5 million. During this 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. After accounting for 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, down 7.3%. Additionally, EBITDA decreased by 5.9% to €16 million.
## What can we expect in 2025?
Beyond its 2024 performance, Kambi provided insight into the upcoming year.
The main guidance suggests EBITDA in the range of €20 million to €25 million, which would be close to the €25.3 million posted in 2024. Costs are likely to rise in some areas, but as these costs will be passed on to partners, Kambi stated this should not affect EBITDA.
Kambi anticipates revenue growth from organic expansion within the operator network, with significant contributions expected from LiveScore and Svenska Spel throughout the year.
However, revenue might be impacted by the end 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 cost efficiency measures…”