Continuing sector trends, Nordic Nasdaq-listed sports betting platform and software supplier Kambi Group is the latest industry stakeholder to have been impacted by unfavourable sporting results this December.
A tough closing to its full-year 2016 performance, saw Kambi record an operating EBIT of €1.8 million down from Q4 2015’s corresponding €3.3 million. The industry supplier detailed that adverse sports results had seen its margin drop to 13% (Q4 2015: 23%).
As a result, Kambi governance would declare Q4 2016 corporate profits (after tax) of €1.2 million (Q4 2015: €2.9 million).
Despite a negative closing quarter, Kambi governance was pleased that the company was able to sustain performance throughout full-year 2016.
The company expects to generate circa €56 million in group revenues aided by a strengthened commercial pipeline, following significant new client wins during the year.
Further full-year 2016 metric results see Kambi post an underlying EBIT of €8.8 million (FY 2015: €7.5 million), with the Kambi governance expecting to declare full-year profits of approximately €7.5 million (FY2015: €6.4 million).
In its corporate update, Kambi governance stated that it was looking forward to 2017, having secured further industry ‘Tier 1’ clients in Mexican media group Televisa and Greentube (Novomatic Group). Kristian Nylén, CEO of Kambi commented on corporate performance
“As widely reported across the industry, December produced many events with player-friendly outcomes. For our operators, these resulted in lower than average margins in the quarter, which in turn, together with increases in gaming-related taxes, impacted on Kambi’s revenues.
Despite this, I’m very pleased to report that our operators continued to demonstrate the underlying strength of the Kambi Sportsbook and reported solid increases in turnover, even when compared to a strong Q4 2015.
We will continue to invest in our world class Sportsbook offering, to maintain our position as the highest quality service in the market, in an evolving market landscape.
In addition, I’m excited that Kambi has secured its first full contract in Latin America, with the signing of Mexican media giant Televisa, offering our premium Sportsbook across all channels. We are now looking forward to building on this foothold across the region.
We are also delighted to see an immediate impact from our partnership with the Novomatic Group, as we have signed a contract with one of its subsidiaries, Greentube. We will help Greentube expand with Kambi’s premium Sportsbook.
We are confident in our strategy of investing in people and technology to create the best Sportsbook on the market.”