Sustained growth in new markets was a key driver of growth for Kambi, as the sports betting technology and systems provider declared a ‘record quarterly performance’.
Publishing its Q4 2020 trading update, Kambi recorded revenues of €46.9 million, a 76% increase on the €26.7 million in Q4 2019. Revenues for the period from January to December 2020 totalled €117.7 million, up 28% from the €92.3 million reported in 2019.
This performance, explained Kambi, was largely attributable to ‘a busy sporting calendar, exceptional operator trading margin and growth in new markets’.
“As we reflect on what has been an exceptionally challenging 12 months, it’s particularly pleasing to complete the year with a record Q4 performance and annual revenues up by 28%,” commented Kristian Nylén, CEO of Kambi.
“At the start of 2020, full year revenue of €117.7 million would have been deemed a great success, so to have delivered such a performance, in spite of the sporting calendar being severely impacted for the best part of four months, speaks volumes for the business we have created, our talented people and the upward trajectory we are on.
“Kambi finished the year in fine fashion, with year-on-year Q4 revenue up by 76% to €46.9 million and operator turnover rising 77% at an operator trading margin of 9.4%. The Kambi Operator Turnover Index came in at 989 which was a clear all-time high, while our business model illustrated the scalability it possesses with an operating margin of 47%.”
Operating revenue also received a substantial boost in 2020, with Kambi recording Q4 EBIT figures of €22.2 million, while full-year EBIT was €32.2 million – a 119% increase on the corresponding period in 2019.
Profit after tax rose from €4.6 million in Q4 2019 to €17.3 million in 2020. For the full-year period, while full-year profits came to €24.1 million.
The US remained a key area of focus for Kambi, with the supplier having signed a series of partnerships across 13 different states. As a result, the US was the largest market for Kambi in Q4 2020, having generated 58% of the total operator GGR for the quarter.
Looking towards the European market, Kambi explained that there was growth of 51% in operator GGR in comparison to Q4 2019.
With regulatory developments continuing to progress in the Netherlands, in addition to new partnerships with the Belgian National Lottery, Kambi said its ‘scalable business model with increased operating leverage’ will help it foster further growth within Europe in 2021.
Nylén continued: “Our strong growth means Kambi is now operating at a scale like never before, which in turn allows the Kambi sportsbook and service to continuously evolve.
“The powerful partner network we have created, with fantastic partners from around the globe, produces ever increasing amounts of unique data, from which we can draw valuable insights to help us improve and continue to offer a high-performance sportsbook.
He concluded: “In summary, it’s been a year that’s shown that when working together, we can find the right responses to the toughest of challenges. The Kambi model is based on partnership, on sharing, on working together with our partners to ensure they have the best chance of success.
“The model was undoubtedly stress-tested in 2020 but it passed with flying colours, leaving me more excited than ever about Kambi’s future.”