## Marginal Growth for Kambi
In 2024, Kambi experienced marginal revenue growth aided by several factors. The inclusion of Hard Rock Digital and Rei do Pitaco to Kambi’s Odds Feed+ services, along with Kwiff adopting its Bet Builder services, contributed to this growth.
Kambi further expanded its offerings by adding partners like KTO Group, Choctaw Nation, VIP Play Inc, and Wind Creek Hospitality to its turnkey sportsbook product over the 12-month period. Additionally, key partners such as Rush Street Interactive, Sun International, and Penn Entertainment renewed their contracts, specifically for the retail sportsbook network.
Despite these gains, challenges emerged, including the impact of Penn’s online migration initiated in 2023. Kambi also contended with new deposit limits in the Netherlands, new gaming taxes in Sweden, and the departure of partner Kindred Group from various markets.
## Bottom-line Improvement in 2024
EBITDA rose by 5.5% to €59.7 million, while operating profit (EBIT) remained stable year-on-year at €20.1 million, with a margin of 11.4%.
Total costs saw a modest 2% increase from the previous year, yet restructuring costs contributed to a 5% decline in pre-tax profit, which decreased to €19 million.
However, with lower income tax payments in 2024, Kambi’s net profit improved, amounting to €15.4 million, marking a 3.4% rise from the previous year.
The company ended the year with a cash flow of €25.9 million, translating to a significant 73% increase compared to 2023.
## Mixed Bag for Kambi in Q4
In Q4 of 2024, Kambi saw a slight 0.5% increase in revenue year-on-year, reaching €44.5 million. During this quarter, Kambi onboarded numerous new clients, including Wind Creek Hospitality and VIP Play Inc.
Nonetheless, total expenses climbed by 3.8% to €38.5 million. After accounting for various costs, including restructuring expenses, pre-tax profit took a significant hit, dropping by 40% to €4.5 million.
Kambi paid €519,000 in income tax, resulting in a net profit of €5.1 million for Q4, a 7.3% decline. Additionally, EBITDA fell by 5.9% to €16 million.
## What Can We Expect in 2025?
Looking ahead to 2025, Kambi provided insights into future expectations.
The primary guidance suggests an EBITA range of €20 million to €25 million, close to the €25.3 million reported in 2024. While costs in certain areas may rise, Kambi indicated that these increases would be passed on to partners, thus not affecting EBITA.
Kambi anticipates revenue growth driven by organic expansion within the operator network, with notable contributions expected from LiveScore and Svenska Spel throughout the year.
Nonetheless, certain challenges could impact revenue, including the conclusion 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 laying today will support our long-term growth ambitions, even as we face some near-term challenges,” Becher concluded.