Kambi’s revenue for the 12 months up to 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), as stated in its earnings released today (26 February). This figure represented a slight increase of 1.8% compared to the previous year.
Although the growth was only marginal, CEO Werner Becher described the period as a “transitional” and “transformative” year for the supplier. Becher began his tenure in July, succeeding the long-serving Kristian Nylén, whose departure was confirmed in January.
Shortly after Nylén announced his exit, he expressed dissatisfaction with Kambi’s performance in 2023. Despite reporting an increase in revenue, net profit and EBITDA were lower year-on-year.
Fast-forward to the present year, Becher expressed a more positive outlook regarding 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 issued a warning about 2025, citing that certain partners, specifically Kindred and LeoVegas, are migrating away from Kambi’s turnkey sportsbook. He also identified 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 aided 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 utilizing its Bet Builder services.
Kambi also added several partners to its turnkey sportsbook product, including KTO Group, Choctaw Nation, VIP Play Inc, and Wind Creek Hospitality throughout the 12-month period. Additionally, key partners Rush Street Interactive and Sun International renewed contracts, as did Penn Entertainment for its retail sportsbook network.
However, there were some 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 were only 2% higher year-on-year. However, restructuring costs increased Kambi’s outgoings, resulting in a pre-tax profit decrease of 5% to €19 million.
On the positive side, income tax payments were lower in 2024, which led to a better bottom line. Net profit for the year totaled €15.4 million, a 3.4% improvement from the previous year.
The supplier ended the year with a cash flow of €25.9 million, representing a 73% increase from 2023.
## Mixed bag for Kambi in Q4
In the final quarter of 2024, revenue increased by 0.5% year-on-year to €44.5 million. During this period, Kambi onboarded several new clients, including Wind Creek Hospitality and VIP Play Inc.
However, total expenses rose by 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 5.9% to €16 million.
## What can we expect in 2025?
Alongside its 2024 performance, Kambi provided insights into potential developments in the coming year.
The headline guidance is EBITA between €20 million and €25 million, which would be close to the €25.3 million achieved in 2024. Costs are expected to increase in some areas, but Kambi indicated that these will be passed on to partners, thereby not affecting EBITA.
Kambi anticipates revenue growth from organic improvements within its operator network, particularly with full-year revenue contributions from LiveScore and Svenska Spel.
However, revenue could also be impacted by challenges 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 program – along with our various partner signings, provide a solid platform for the future,” Becher stated.
“The foundations we are building today will enable us to emerge stronger, more agile, and well