Kambi’s revenue for the 12 months ending 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), as reported in its earnings released today (26 February). This represents a slight increase of 1.8% from the previous year.
Although the growth was only marginal, the period was described by Becher as a “transitional” and “transformative” year for the supplier. Becher began his tenure as CEO in July, succeeding the long-serving Kristian Nylén, who announced his departure in January.
Following Nylén’s departure announcement, he expressed dissatisfaction with Kambi’s 2023 performance. Despite an increase in revenue, net profit and EBITDA were lower compared to the previous year.
In contrast, Becher was more optimistic about the group’s achievements over the past 12 months. He highlighted the supplier’s efforts in diversifying its revenue streams.
However, Becher also issued a warning for 2025 as certain partners, particularly Kindred and LeoVegas, plan to migrate away from Kambi’s turnkey sportsbook. He also pointed out 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
For 2024, marginal revenue growth was supported by several factors, such as 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 introduced several partners to its turnkey sportsbook product, including KTO Group, Choctaw Nation, VIP Play Inc, and Week Creek Hospitality during the year. 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, maintaining a margin of 11.4%.
Total costs were only 2% higher year-on-year. However, restructuring costs increased Kambi’s expenses, leading to a 5% decline in pre-tax profit to €19 million.
On the positive side, income tax payments were lower in 2024, resulting in a better bottom line. Net profit for the year was €15.4 million, a 3.4% improvement over the previous year.
The supplier ended the year with a cash flow of €25.9 million, representing a 73% increase from 2023.
## Mixed Results for Kambi in Q4
In the final quarter of 2024, revenue rose by 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. 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.
## Outlook for 2025
Kambi also provided insight into what may be ahead in the coming year.
The headline guidance is EBITDA in the range of €20 million to €25 million, similar to the €25.3 million reported in 2024. While costs may rise in some areas, these will be passed on to partners, so Kambi anticipates no impact on EBITDA.
Kambi expects revenue tailwinds from organic growth within the operator network, notably with full-year revenue contributions from LiveScore and Svenska Spel.
However, revenue may be affected by challenges such as 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 a cost efficiency programme—along with our various partner signings, provide a solid platform for the future,” Becher said. “The foundations we have built set us up for continued success.”