### Kambi’s Revenue and Performance in 2024
Kambi’s revenue for the year ending 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), according to its earnings released today (26 February), marking a modest 1.8% increase from the previous year.
Becher described this period as both a “transitional” and “transformative” year for the company. His tenure as CEO began in July, succeeding the long-serving Kristian Nylén, whose departure was confirmed in January.
Shortly before Nylén’s exit, he expressed dissatisfaction with Kambi’s 2023 performance. Despite an increase in revenue, net profit and EBITDA fell year-on-year.
In contrast, Becher expressed positivity about the achievements of the past year, highlighting Kambi’s efforts to diversify its revenue streams in recent months.
However, he cautioned about potential challenges in 2025, noting that some partners, especially Kindred and LeoVegas, plan to migrate away from Kambi’s turnkey sportsbook. He also pointed out the potential issues arising from the recently approved temporary VAT in Colombia.
“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 continue to diversify our revenue streams through product expansion.”
### Marginal Growth for Kambi
In 2024, the marginal revenue growth was driven by several factors, including the addition of Hard Rock Digital and Rei do Pitaco to Kambi’s Odds Feed+ services and Kwiff’s adoption of its Bet Builder services.
Kambi also added several partners to its turnkey sportsbook product, including KTO Group, Choctaw Nation, VIP Play Inc, and Week Creek Hospitality during the year. Additionally, existing partners Rush Street Interactive and Sun International renewed contracts, as did Penn Entertainment for its retail sportsbook network.
Nevertheless, challenges persisted, such as impacts from Penn’s online migration initiated in 2023, new deposit limits in the Netherlands, new gaming taxes in Sweden, and Kindred Group’s market exits.
### 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 an 11.4% margin.
Total costs increased by only 2% year-on-year, but restructuring costs affected Kambi’s finances, leading pre-tax profit to decline by 5% to €19 million.
Conversely, lower income tax payments in 2024 enhanced the bottom line, with a net profit of €15.4 million, representing a 3.4% improvement from the prior year. Kambi concluded the year with a cash flow of €25.9 million, a 73% rise from 2023.
### Mixed Results for Kambi in Q4
In Q4 2024, revenue grew 0.5% year-on-year to €44.5 million. Kambi acquired new clients during this period, 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 in Q4, a 7.3% decrease. Additionally, EBITDA declined 5.9% to €16 million.
### Expectations for 2025
Along with its 2024 performance review, Kambi provided insights on expectations for 2025.
The company forecasts EBITA in the range of €20 million to €25 million, close to the €25.3 million posted in 2024. Although costs may rise in some areas, these will likely be transferred to partners, thus not impacting EBITA.
Kambi anticipates revenue benefits from organic growth within its operator network, particularly from full-year contributions from LiveScore and Svenska Spel. However, revenue could be adversely affected 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 a cost-efficiency programme—along with our various partner signings, provide a solid platform for the future,” Becher said. “The foundations we are building today will enable us to continue growing.”