Kambi’s revenue for the 12 months ending 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), according to the earnings released today (26 February). This represented a modest increase of 1.8% compared to the previous year.
Despite the marginal growth, 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 departure was announced in January.
Following Nylén’s exit announcement, he expressed dissatisfaction with Kambi’s performance in 2023. Although revenue rose, both net profit and EBITDA were lower compared to the previous year.
Moving forward to this year, Becher was more optimistic about the group’s achievements over the past 12 months, emphasizing the supplier’s efforts to diversify its revenue streams.
However, Becher cautioned about 2025, as certain partners, particularly Kindred and LeoVegas, are transitioning 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
Focusing on 2024, the marginal revenue growth was supported by several factors. These include 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 added several partners, such as KTO Group, Choctaw Nation, VIP Play Inc, and Week Creek Hospitality, to its turnkey sportsbook product during the 12-month period. Furthermore, key partners Rush Street Interactive and Sun International renewed their 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 compared to the previous year at €20.1 million, with a margin of 11.4%.
In terms of spending, total costs were only 2% higher year-on-year. However, restructuring costs added more to Kambi’s outgoings, resulting in a 5% decrease 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 totaled €15.4 million, improving by 3.4% on the previous year.
The supplier closed the year with a cash flow of €25.9 million, a 73% increase from 2023.
## Mixed bag 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 gained several 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 dropped by 40% to €4.5 million.
Kambi paid €519,000 in income tax, leaving a net profit of €5.1 million in Q4, down 7.3%. Additionally, EBITDA decreased by 5.9% to €16 million.
## What can we expect in 2025?
In addition to its 2024 performance, Kambi offered insights into what might be expected in the coming year.
The headline guidance is EBITA in the range of €20 million to €25 million, close to the €25.3 million posted in 2024. Costs are likely to be higher in some areas, but as these will be passed to partners, Kambi stated this should not impact EBITA.
Kambi anticipates revenue boosts from organic growth within its operator network, particularly from full-year revenue contributions from LiveScore and Svenska Spel.
However, revenue is also likely to be affected by certain headwinds, 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 programme—along with our various partner signings, provide a solid platform for future growth,” Becher concluded.