Kambi’s revenue for the 12 months ending 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), as revealed in its earnings released today (26 February). This represented a modest increase of 1.8% from the previous year.
Despite only marginal growth, Becher characterized the period as a “transitional” and “transformative” year for the supplier. Notably, the CEO took over in July, succeeding the long-serving Kristian Nylén, who announced his departure in January.
Following Nylén’s exit announcement, he expressed dissatisfaction with Kambi’s 2023 performance. Although revenue increased, both net profit and EBITDA declined compared to the previous year.
Moving to this year, Becher expressed a more positive outlook regarding the group’s achievements over the past 12 months, pointing to efforts to diversify revenue streams.
However, Becher warned of challenges in 2025, as some partners, particularly Kindred and LeoVegas, plan to transition away from Kambi’s turnkey sportsbook. He also mentioned the newly approved temporary VAT in Colombia as a potential concern 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 stated.
“As previously announced, we are actively managing costs and 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 implementing its Bet Builder services.
Kambi also expanded partnerships for its turnkey sportsbook product, adding KTO Group, Choctaw Nation, VIP Play Inc, and Wind Creek Hospitality during the year. Key partners Rush Street Interactive and Sun International renewed contracts, and Penn Entertainment extended its retail sportsbook network agreement.
However, challenges such as Penn’s online migration initiated in 2023, new deposit limits in the Netherlands, new gaming taxes in Sweden, and Kindred Group’s withdrawal from various markets arose.
## 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%.
Overall, total costs rose by only 2% year-on-year. However, restructuring expenses added 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, improving the bottom line. Net profit for the year totaled €15.4 million, a 3.4% improvement from the previous year.
The supplier ended 2024 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 rose 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 increased by 3.8% to €38.5 million, and 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, down 7.3%. Additionally, EBITDA decreased by 5.9% to €16 million.
## What can we expect in 2025?
Alongside its 2024 performance, Kambi provided insights into potential developments for the coming year.
The headline guidance indicates EBITA in the range of €20 million to €25 million, close to the €25.3 million recorded in 2024. Costs are expected to rise in some areas, but these will be passed to partners, so Kambi anticipates no impact on EBITA.
Kambi expects revenue boosts from organic growth within its operator network, particularly from full-year revenue contributions from LiveScore and Svenska Spel.
However, revenue could be affected by headwinds, 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 program – along with our various partner signings, provide a solid platform for the future,” Becher said.