### Kambi’s 2024 Financial Performance
Kambi’s revenue for the 12 months ending 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), according to its earnings released today. This figure shows a marginal increase of 1.8% over the previous year.
Though growth was slight, CEO Becher described the period as a “transitional” and “transformative” year for the supplier. Becher took over as CEO in July after the exit of long-serving Kristian Nylén, whose departure was confirmed in January.
Following his exit announcement, Nylén expressed dissatisfaction with Kambi’s performance in 2023. Despite an increase in revenue, net profit and EBITDA were lower than the previous year.
Moving to 2024, Becher expressed a more positive outlook regarding the group’s achievements over the past year, citing efforts to diversify revenue streams.
However, Becher warned of challenges in 2025 as partners like Kindred and LeoVegas move away from Kambi’s turnkey sportsbook. He also pointed out the recently approved temporary VAT in Colombia as a potential issue.
“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 driven by factors including the addition of Hard Rock Digital and Rei do Pitaco to Kambi’s Odds Feed+ services, as well as Kwiff using its Bet Builder services.
Kambi also added several partners to its turnkey sportsbook product, including KTO Group, Choctaw Nation, VIP Play Inc, and Wind Creek Hospitality. Important partners such as Rush Street Interactive, Sun International, and Penn Entertainment renewed contracts.
Challenges included the impact of Penn’s online migration initiated in 2023, new deposit limits in the Netherlands, new gaming taxes in Sweden, and the exit of partner Kindred Group from 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 with a margin of 11.4%.
Total costs rose by 2% year-on-year, but restructuring costs increased Kambi’s expenses, leading to a 5% drop in pre-tax profit to €19 million.
Income tax payments were lower in 2024, contributing to a stronger bottom line. Net profit for the year was €15.4 million, a 3.4% improvement from the previous year.
The supplier concluded the year with a cash flow of €25.9 million, marking a 73% increase from 2023.
### Mixed Results for Kambi in Q4
In Q4 2024, revenue increased by 0.5% year-on-year to €44.5 million. Kambi acquired new clients including Wind Creek Hospitality and VIP Play Inc during this period.
However, expenses rose by 3.8% to €38.5 million, resulting in a 40% drop in pre-tax profit to €4.5 million after accounting for restructuring expenses.
Kambi paid €519,000 in income tax, leaving a net profit of €5.1 million in Q4, down 7.3%. EBITDA fell by 5.9% to €16 million.
### Expectations for 2025
In addition to its 2024 performance, Kambi provided insights into the upcoming year.
Kambi projects EBITA to range from €20 million to €25 million, aligning closely with the €25.3 million posted in 2024. Although costs may rise in certain areas, these will be passed to partners and are not expected to impact EBITA significantly.
Revenue is anticipated to benefit from organic growth in the operator network, particularly through full-year contributions from LiveScore and Svenska Spel.
However, revenue could face challenges due to the cessation 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.