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 slight increase of 1.8% compared to the previous year.
CEO Becher described the period as a “transitional” and “transformative” year for the supplier, following his leadership takeover in July from the long-serving Kristian Nylén, whose departure was confirmed in January.
After Nylén’s departure announcement, he expressed his dissatisfaction with Kambi’s performance in 2023, despite an increase in revenue, as net profit and EBITDA were lower year-on-year.
In contrast, Becher was more positive about 2024, highlighting the supplier’s efforts to diversify its revenue streams. However, he issued a warning for 2025 due to some partners, including Kindred and LeoVegas, migrating away from Kambi’s turnkey sportsbook. He also noted the potential impact of 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 are continuing to diversify our revenue streams through product expansion.”
## Marginal Growth for Kambi
Focusing on 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 integrating 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 during the year. Key partners Rush Street Interactive and Sun International renewed contracts, and Penn Entertainment did the same for its retail sportsbook network.
However, there were challenges, such as the impact of Penn’s online migration that began in 2023. Kambi also faced new deposit limits in the Netherlands, new gaming taxes in Sweden, and market exits by partner Kindred Group.
## 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 an 11.4% margin.
Total spending rose by only 2% year-on-year. However, restructuring costs added more to Kambi’s expenses, leading to a 5% decrease in pre-tax profit to €19 million.
On the positive side, lower income tax payments in 2024 contributed to an improved bottom line. The net profit for the year totaled €15.4 million, a 3.4% increase from the previous year.
The supplier concluded the year with a cash flow of €25.9 million, representing a 73% increase compared to 2023.
## Mixed Bag for Kambi in Q4
In the final quarter of 2024, revenue climbed 0.5% year-on-year to €44.5 million. During the quarter, Kambi gained several new clients, 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 dropped 40% to €4.5 million.
Kambi paid €519,000 in income tax, resulting in a net profit of €5.1 million in Q4, a decrease of 7.3%. Additionally, EBITDA fell 5.9% to €16 million.
## What Can We Expect in 2025?
Alongside its 2024 performance, Kambi provided insight into potential developments in the coming year.
The headline guidance for 2025 suggests EBITA will be in the range of €20 million to €25 million, close to the €25.3 million reported in 2024. Costs are expected to increase in some areas, but Kambi believes these will not impact EBITA, as they will be passed on to partners.
Kambi anticipates revenue growth from organic expansion within its operator network, with full-year contributions from LiveScore and Svenska Spel.
However, certain headwinds, such as the conclusion of transition fees received during 2024 and the proposed temporary VAT on deposits in Colombia, could impact revenue.
“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.