Kambi has recorded revenue of €43m (£35.8m) for Q3 2024, representing a 2% year-on-year (YoY) increase when compared to the same period last year.
However, a 30% decline in post-tax profit has seen Kambi’s share price slump by almost 14% at the time of writing to SEK117.20.
The firm estimated that around 90% of the total was derived from sportsbook revenues, with the remaining figures coming from its modular services.
Geographically, 52% of group revenue came from the Americas, 45% from Europe and the Rest of the World making up the remainder.
EBITDA also fell 3% YoY to €13.5m, with EBITA margin also dropping from 14.1% in Q3 2023 to 11.4% for Q3 2024.
EBIT, or operating profit, slumped 23% to €3.6m, while after accounting for a 5.3% YoY increase in expenses to €39.4m and €1.3m worth of income tax, Kambi’s Q3 post-tax profit came to €2.5m, down 30% YoY.
However, the Stockholm-listed supplier did note there was growth in its underlying business as Q3 saw Kambi’s Operator Turnover Index reach 687, an increase of 14% from 602 a year prior.
The turnover growth was driven by the onboarding of new partners Svenska Spel and LiveScore Group, in addition to the success of the summer’s sporting tournaments including the Olympic Games Paris, Euro 2024 and the Copa América.
During Q3, Kambi also signed major partnerships with Hard Rock Digital in the US and with Brazilian operator KTO Group, ahead of the South American country’s regulated market launch in January 2025.
In terms of the first nine months of the year, Kambi recorded revenue of €132m, up from €129m for the equivalent period in 2023.
Post-tax profit for January to September this year came to €10.4m, up 11% YoY as year-to-date EBITDA increased 10% YoY to €43.7m, while EBITA margin increased to 13.8%.
Speaking on his first quarterly earnings as Kambi CEO, Werner Becher expressed optimism for onboarding more operators in the future, despite losing major partners Kindred Group and LeoVegas.
He said: “Looking ahead, Kambi’s customer base will continue to evolve with, for example, Kindred and LeoVegas moving away from our turnkey sportsbook and adding a variety of new partners across our wider product portfolio.
“One of my observations prior to taking this role was that although Kambi had seen some large operators move away in recent years, it still delivered growth, albeit modest, during that time.
“This gives me great confidence that, through the ongoing diversification of our products and partner roster, we will increasingly reduce the potential impact of future partner movement and create a much more stable base for long-term growth.”
Nonetheless, Becher conceded the firm would have to deal with the ramifications of losing revenue from major partners.
The CEO added: “In the meantime, however, we must deal with the challenges that losing partner revenue brings.
“This is why I am particularly happy with the recent progress we have made in modularising our sportsbook and expanding our revenue streams, aiming to come up to scale with these products within a couple of years.
“In short, although we have some difficult near-term headwinds, I see a bright future for Kambi as we become the industry’s home of premium sports betting solutions.
“We have some exciting opportunities ahead of us, such as the great potential of our new products and the prospect of a regulated Brazilian market around the corner.
“I am sure, once we get through this period of transition, we will have a more diverse, sustainable and faster growing business.”
Additionally, the supplier has sanctioned a share repurchase programme, in which it will buy back up to €12m shares from today through to 20 May 2025.
Kambi said: “The objective of the buyback is to achieve added value for Kambi´s shareholders and to give the board increased flexibility with Kambi’s capital structure by reducing the capital.”
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