Kambi hails ‘springboard’ Q3, extends with LeoVegas
Kristian Nylén, chief executive of Kambi Group, has described the third quarter as a “springboard” period for the company, after it reported a 16% year-on-year rise in operator turnover, while the firm has also extended a deal with LeoVegas.
Revenue in the three months through to September 30 remained level at €14.8m ($17.2m), but operating profit was down from €3.1m to €1.1m with a margin of 7%, compared to 21% last year.
Profit after tax also dropped from €2.7m to €800,000, while earnings per share were down from €0.092 to €0.026.
Kambi noted that the comparative quarter in 2016 featured a number of major sporting events, namely the Uefa Euro 2016 national football team tournament and the summer Olympic Games in Rio de Janeiro, Brazil.
For the year-to-date, to the end of September, revenue stands at €43.1m, which is up on the €41.7m recorded at the same point last year.
However, operating profit is down from €7m to €2.7m, with profit after tax also dropped from €6.3m to €2m and earnings per share €0.211 to €0.066.
“In many ways, Q3 could be viewed as a springboard quarter for Kambi,” Nylén said.
“I’m pleased to report Kambi was able to continue its progress, with operator turnover rising 16% year-on-year versus a period which included the final stages of Euro 2016 and the Olympic Games.
“Furthermore, this growth was delivered in the context of an unusually high operator margin of 7.5%, and means our margin for the first nine months of the year is 6.6% – a figure which falls within our projected annual range of 6.5-7%.
“This strengthens our belief that while margins will fluctuate due to the outcome of sporting events, we don’t see any long-term trends that suggest any continued downward pressure.”
Meanwhile, Kambi has signed a multi-year extension to its sportsbook deal with LeoVegas.
Under the agreement, Kambi will continue to provide its premium sportsbook and technology services to LeoVegas.
The two companies have been working together since the middle of 2016, when LeoVegas launched its LeoVegas Sports brand using the Kambi sportsbook ahead of Euro 2016.
Incidentally, LeoVegas Sport was the first operator from the Kambi network to take large ownership of its frontend, enabling it to offer more of a personalised experience to players.
Nylén said: “Since partnering in 2016, Kambi has enjoyed a close working relationship with LeoVegas, co-creating a differentiated product proven to appeal to players across various markets and demographics.
“Contract extensions are particularly pleasing as they underline both the relevance of the outsourcing model and quality of our Sportsbook, so we are of course delighted to have retained LeoVegas as a customer for the long-term.”
Riku Jokela, head of sports at LeoVegas added: “We really appreciate the support we’ve had from Kambi as we build and improve our unique sports betting experience; it makes a big difference for us that Kambi offers the most betting markets with all sports included.
“Also, as a sports betting operator, we fully understand how important in-play betting is for our customers and, as far as I’m concerned, Kambi offers the best in-play experience.”
Related article: Kambi reports mixed second quarter, re-signs with 888