**Kambi Reports 2024 Revenue Increase**
Kambi reported revenue for the 12 months ending 31 December 2024 of €176.4 million (£146.4 million/$185.2 million), according to its earnings released today (26 February). This represented a 1.8% increase from the previous year.
Although the growth was marginal, Becher described the period as a “transitional” and “transformative” year for the supplier. Incidentally, the CEO began his tenure in July, taking over from the long-serving Kristian Nylén, whose exit was confirmed in January.
Shortly after Nylén announced his exit, he expressed dissatisfaction with Kambi’s performance in 2023. Despite reporting an increase in revenue, net profit and EBITDA were lower year-on-year.
Fast-forward to this year, Becher appeared much more positive about the group’s achievements over the past 12 months. He highlighted the supplier’s efforts to diversify its revenue streams in recent months.
However, Becher warned of potential challenges in 2025 as certain partners, particularly Kindred and LeoVegas, plan to migrate away from Kambi’s turnkey sportsbook. He also noted the recently approved temporary VAT in Colombia as a potential issue 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 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
In 2024, marginal revenue growth was aided by several factors. These include the addition of Hard Rock Digital and Rei do Pitaco to Kambi’s Odds Feed+ services, as well as Kwiff adopting 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 12-month period. Additionally, key partners Rush Street Interactive and Sun International renewed contracts, and so did Penn Entertainment for its retail sportsbook network.
However, there were some challenges, such as the impact of Penn’s online migration which began in 2023. Kambi also faced new deposit limits in the Netherlands and new gaming taxes in Sweden, while partner Kindred Group exited various markets.
## Bottom-line Improvement in 2024
EBITDA increased by 5.5% to €59.7 million while operating profit (EBIT) remained flat from the previous year at €20.1 million with a margin of 11.4%.
Regarding expenses, total costs were only 2% higher year-on-year. However, restructuring costs added to Kambi’s expenditures, resulting in pre-tax profit declining by 5% to €19 million.
On a positive note, income tax payments were lower in 2024, which contributed to a better bottom line. Net profit for the year totaled €15.4 million, marking a 3.4% improvement from the previous year.
The supplier concluded the year with 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 increased by 0.5% year-on-year to €44.5 million. During this three-month period, Kambi acquired several new clients, including Wind Creek Hospitality and VIP Play Inc.
However, total expenses rose by 3.8% to €38.5 million, and 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 for Q4, down 7.3%. Additionally, EBITDA decreased by 5.9% to €16 million.
## What Can We Expect in 2025?
In addition to its 2024 performance, Kambi offered insights into potential developments in the coming year.
The headline guidance suggests EBITA in the range of €20 million to €25 million, close to the €25.3 million posted in 2024. Costs are expected to rise in some areas but should not impact EBITA as they will be passed on to partners.
Kambi anticipates revenue growth from organic developments within its operator network, notably from full-year revenue contributions from LiveScore and Svenska Spel.
However, revenue may also be affected by certain challenges, 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 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 emerge stronger