Providing further insight into the firm’s results during a live stream, CEO Kristian Nylén emphasised that in spite of revenue from the Napoleon deal being unaccounted for during the Q1 period, there wasn’t a significant impact felt in the firm’s performance. 

According to David Kenyon, the group’s CFO, the positive performance underlines that Kambi has long term stability and can continue to grow following departure from North America. 

Revenues for the first quarter were registered at €43.2m (Q12023: €44m), while cash flow excluding working capital and M&A slightly increased to €5.4m (€3.2m). 

Furthermore, the firm reported EBIT operating profit for Q1 2024 remained stable at  €4.4m (€4.5m) at a margin of 10.2% (10.3%). EBITA on acquired intangible assets was €5.8m (€5.8m) at a margin of 13.3% (13.1%).

Nylén further commented that ‘it is not impossible’ for financial targets until 2027 to be achieved either through organic growth or M&A. 

He went on to reveal that ‘organic growth is definitely the main road for’ the supplier as it continues on a transformative path for 2024. 

Nylén continued by outlining that ‘we have always been looking opportunistically at M&A. 2027 is quite far out. I wouldn’t rule it out if we find a suitable partner’.

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It comes after 2018 saw Kambi land its highest-profile US partnership, becoming lead wagering systems provider for leading fantasy sports operator DraftKings.

However, late 2019 developments saw DraftKings undertake a merger with rival systems provider SBTech – a deal funded by sports private equity fund Diamond Eagle Corp which saw DraftKings listed on the New York Nasdaq Exchange this April.

This morning, Kambi communicated that it had reached mutual terms on how DraftKings will migrate from its sportsbook platform to its new proprietary systems.

The agreement governing the provision of Kambi’s sports betting technology and services to DraftKings will end no earlier than 30 September 2021. However, DraftKings has the option to leverage its proprietary technology, in full or part, prior to that date.

Signing off the statement, Kristian Nylén, Kambi CEO, said: “Since partnering in June 2018, the Kambi-DraftKings relationship has proven to be highly rewarding for both parties, delivering first-class sports betting experiences to players across more states than any other sportsbook, and establishing Kambi and DraftKings as true leaders in their respective fields.

“The agreement we’ve announced today works to secure a strong revenue stream for Kambi for the next 15 months, while our growing and exciting portfolio of partners leaves me with no doubt that Kambi is well placed to extend its leadership position over the months and years to come.”

Contract terms state that any sports betting revenue generated by DraftKings prior to 30 September 2021, ‘either via Kambi or following a migration away from Kambi’, will be subject to the same level of revenue share payments from DraftKings to Kambi.

The mutual agreement sets out the balance of responsibilities between the two firms during the transition phase – in which both companies will adhere to respecting their individual data and intellectual properties.

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Publishing its Q2 report, Kambi highlighted that the pandemic, coupled with the temporary closure of US casinos during the pandemic, has resulted in a ‘greater impact on Kambi’s US-facing business compared with other regions’.

Revenues for the quarter took a 32 per cent hit, falling from €21.6m in Q2 2019 to €14.8m, while EBITDA decreased to negative €3.4m, down from €2.5m in the same quarter last year.

Kristian Nylén, Chief Executive Officer, said: “After what has undoubtedly been a testing period for Kambi, as it has for everyone in our sector, I’m proud of the resilience and underlying strength we have displayed in recent months, which bodes well for our future.

“Of course, the financial numbers published today aren’t as I would have hoped back when we were planning for 2020, but they do reflect a business able to deliver when faced with both adversity and uncertainty.

“Given the impact the pandemic is having on the sporting calendar, to generate 68% of the revenues of the comparative quarter last year is a great achievement. Furthermore, operator turnover accelerated through the period, finishing with year-on-year growth for June, which tells me we are on the right track as a business and well positioned for the second half of 2020 and beyond.

“Our ability to successfully navigate the COVID-19 crisis was underpinned by the exceptional contribution from our incredible staff around the globe, who continued to provide a fantastic service to our partners and their end users during these difficult times.”

Among its highlights for the quarter, the sports betting platform and systems provider praised its continued US expansion, having completed online launches in both Colorado and Illinois by supporting Rush Street Interactive in taking the first legal online bets in both states.

The US and Central America has become a key focus for Kambi, according to its Q2 report, as its geographical dependency on the European market decreased from 77 per cent in Q2 2019 to 73 per cent.

Operating expenses for Q2 2020 dropped to €18.1m from €19.1m in Q2 2019, while operating expenses compared to Q1 2020 dropped by €2.9m, largely driven by ‘areas including data supply, travel and marketing, and the rest from government subsidy schemes’. Kambi expects an increase in operating costs as the group returns to ‘pre-COVID levels’.

Nylén concluded: “In parallel to our delivery around sports, we extended our run of market firsts when launching online in both Colorado and Illinois, with our partner Rush Street Interactive taking the first legal bets in both cases. Our record of launching multiple partners across various states in the US is something I am proud of and I know sets us apart from our competitors.

“It was also pleasing to secure an extended agreement with Corredor Empresarial and its BetPlay brand. BetPlay has enjoyed great success in the regulated Colombian market, becoming market leader within 12 months of launch, a position it maintains today. While much attention is on the US market, the Latin American market also holds great potential for Kambi.

“Although challenges remain, and an element of uncertainty persists, the past few months have proven Kambi can overcome the toughest of tests, and emerge the other side stronger for it. With sports gradually returning and our ambitious partners keen to catch up on lost time, we’re ready for an exciting second half of the year.”

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Under the terms of the agreement, Kambi will install its suite of on-property sports wagering products in Four Winds’ casino locations in New Buffalo, Dowagiac and Hartford, Michigan, with an online launch to follow. 

Following a competitive tender process, Kambi was selected by Four Winds Casinos for its ‘high-quality on-property and online product’, a ‘strong regulatory and compliance record’, and its position as the independent sports betting technology partner trusted by operators and regulators alike in the United States. 

Kristian Nylén, Kambi, chief executive officer, said: “We are very proud to be entering this partnership with the Pokagon Band and its Four Winds Casinos.  They are a leading operator in the Midwest and share our commitment to providing customers with consistently engaging experiences.

“Kambi has established itself as the trusted partner to Tribal casino gaming enterprises that wish to leverage the strength of their brand to truly capitalise on the sports betting opportunity, and we are excited to be supporting Four Winds as they look to fulfill their online and on-property ambitions.”

Four Winds Casinos has three locations in Michigan and one location in Indiana. It’s flagship resort in New Buffalo offers 125,000 square feet of gaming which includes more than 2,400 slot machines and 28 table games. 

Frank Kennedy, senior vice president of gaming operations for Four Winds Casinos, said: “We are excited to partner with Kambi to bring sports betting to Four Winds Casinos and take the gaming experience we offer guests to the next level.  We look forward to announcing the details of the sports betting options we will offer at our Michigan locations in the near future.”

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As revenue increased 12.2 per cent to €23m (2018: €20.5m) profit dipped to €2.3m (2018: €3.3m), as operating costs grew 20.2 per cent to €19.6m (2018: €16.3m).

Kristian Nylén, CEO of Kambi, commented: “The third quarter is traditionally a challenging one for the sports betting industry, particularly in a year with no major summer football tournament. 

“This, along with our ongoing investments to capitalise on the huge US opportunity, was the reason for the year-on-year decrease in operating result. However, despite the tough World Cup comparatives and a relatively quiet July sporting calendar, I’m pleased to report Kambi Q3 revenue grew 12 per cent year-on-year while operator turnover increased 23 per cent.”

The US again became a major focus for the firm in its latest financial report, with Kambi adding to a roster of clients that boasts Greenwood Gaming and Entertainment, Mohegan Gaming and Entertainment and Rush Street Interactive.

Firstly the sports betting solutions provider aligned with gaming operator Penn National to significantly boost its market access capabilities across the country, before Jack Entertainment were brought on-board to deepen its footprint across The Buckeye State.

Multiple Q3 launches were also highly praised, as Kambi saw online or on-property debuts take place across New York, Iowa, Indiana, Pennsylvania, New Jersey and West Virginia.

Nylén added: “We signed two new customers during the quarter, the first being Penn National Gaming, the largest regional gaming operator in North America. With market access to as many as 19 states, Penn National was always a key US target for us. 

“In addition to the land-based establishments Penn National operates, the company has a sports betting philosophy that complements our own, which bodes well for a long and successful relationship.

“We also signed a deal with Jack Entertainment, which covers two retail establishments and an online offering in Ohio. A digital-savvy operator with a strong, local brand, Jack Entertainment is an operator we are excited about working with. 

“Meanwhile, we also secured contract extensions with NagaWorld and DraftKings, the latter of which has already seen us enter a number of additional states as we build upon the partnership’s early success in New Jersey.”

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The move comes fresh off the back of the latter striving to accelerate growth to become the ultimate sports entertainment option for fans via a new Boston base of operations.

The terms of the new deal secure Kambi’s current revenues in New Jersey, while also providing the opportunity to generate incremental revenues as and when the partnership enters the additional jurisdictions. 

Jason Robins, DraftKings’ chief executive officer, added: “Kambi has been a key partner for DraftKings, providing us with back-end sportsbook technology that has enabled to us to offer our customers an engaging product in a highly competitive market.”

The extended agreement includes terms to be extended into the states of Colorado, Indiana, Iowa, Maine, Pennsylvania, Tennessee, West Virginia and New York, which is to be the site of the first activation of the enhanced link-up.

This is to come at the Waterloo-based Del Lago Resort and Casino in upstate New York, with the property’s DraftKings sportsbook set to open tomorrow (Friday 23 August).

As part of the new sportsbook Del Lago promises more than 6,000 square feet of action, 23 betting kiosks, four betting windows and 1,000 square feet of LED video screens.

Replacing the properties Vine Restaurant and Bar, former Syracuse University star and NFL quarterback Donovan McNabb will be on hand to help open the new entity.

Kristian Nylén, Kambi chief executive officer, added: “Over the course of the past 12 months, Kambi and DraftKings have developed a symbiotic relationship, working closely together to deliver a high-quality sportsbook, which has only improved over time.

“I’m delighted the extension of our relationship through this new agreement will enable players in other states to enjoy the same exciting sports betting experiences that have helped DraftKings become a market leader in New Jersey.”

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As a result Kambi is to power the offerings across its portfolio of 40 gaming facilities in 19 US states, with multi-year agreements entered alongside operators DraftKings, PointsBet, theScore and The Stars Group.

Under the terms of the agreements, each skin partner will have the option to own, operate, and brand real-money online sports betting, poker, and casino offerings in certain stipulated regions, pursuant to a first, second or third skin, as applicable, and subject to license availability, state law, and regulatory approvals.

Legal sports betting is active or pending in eight jurisdictions where Penn operates, with bills filed across numerous other states where the firm has a land-based presence. 

Jon Kaplowitz, Penn’s vice president of interactive gaming, said of the deals with the quintet: “We’re pleased to be providing the top names in sports betting, igaming and poker access to our company’s non-primary licenses to conduct these operations in exchange for a combination of upfront cash and equity, one-time market access fees and ongoing revenue sharing.

“Sports betting represents an exciting new growth opportunity for Penn National. Our skin agreements announced today will help fund the cost of launching and maintaining our primary sports betting and igaming operations, both by way of the upfront consideration and the long term revenue sharing arrangements, which are consistent with industry standards and subject to minimum guarantees.

The first launches are due to take place in Q3 2019, with an initial focus placed upon Penn’s brick and mortar casinos in Iowa and Indiana, with online to follow in 2020.

Rafi Ashkenazi, CEO of The Stars Group, whose deal covers nine states and comes with a $12.5m upfront payment, commented; “We are excited to announce this agreement with Penn, a respected leader in the gaming and racing industry in the United States. 

“This agreement further extends our market access platform, as we work to establish our Fox Bet business as one of the leaders in the emerging US online betting and gaming market.”

Kristian Nylén, Kambi’s CEO, added: “Kambi’s strategy has always been to partner with tier one operators, particularly those that share our vision and passion for sports and sports wagering.

“In Penn National, we have found an ideal partner – one that is not only passionate about providing high quality sports wagering experiences to its customers, but a company that adheres to the highest level of ethical business standards.”

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Founded by former PokerStars directors Morten Tonnesen and José del Pino, the multi-year agreement will see the Kambi sportsbook be integrated into the firm’s omega core platform ahead of its proposed launch in the second half of the year.

Mobile first casino BetWarrior strives to proceed with a data-led approach, utilising artificial intelligence and machine learning techniques to deliver localised and personalised gaming experiences.

Tonnesen, BetWarrior co-founder and chief executive officer, said of the partnership: “At BetWarrior, we are building a unique gaming product that uses innovative technology to put the player at the centre of the action.

“This includes leveraging the latest machine learning and artificial intelligence tools to create a truly personalised experience for every customer. By partnering with Kambi, we gain access to flexible sportsbook technology that enables us to deliver upon our vision.

“We have been hugely impressed by both the power of Kambi’s technology and the strength of its team, and we felt this was a perfect match for BetWarrior.”

Kambi stresses that it fits the BetWarrior bill of developing unique experience, with its technology, open platform and advanced suite of APIs to enable the firm to achieve its differentiation goals, while the operator will also be able to leverage real-time data provided to power its personalisation strategy.

Kristian Nylén, Kambi’s chief executive officer, added: “The Kambi Sportsbook lends itself to those with the imagination and capability to innovate and deliver truly unique and personalised sports betting experiences to their players.

“In BetWarrior we have partnered with a visionary operator and experienced management team, with vast experience of European and LatAm markets that plans to do just that – leverage the freedom afforded by Kambi’s sophisticated technology to execute on their strategy to create a safe and engaging sportsbook product.”

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Significant steps made thus far have been deepened during 2019’s first three months, with the company now powering five of the eight sportsbooks now live in the state of Pennsylvania.

This is due to recent manoeuvres made alongside Greenwood Gaming and Entertainment, alongside which saw launches at Parx Casino and South Philadelphia Turf Club were added to with a third at it’s Valley Forge Turf Club.

Furthermore, recent figures posted by state regulator the Pennsylvania Gaming Control Board showed that Kambi customers generated more than 82 per cent of Pennsylvania’s sports betting revenue.

An important step was also made by the Malta-headquartered firm in Connecticut, as Kambi has group revenue increased 28 per cent for Q1 to €21m (2018: €16.4m), with operating profit also rising 12.7 per cent to €2.6m (€2m).

Mohegan Gaming and Entertainment was added to the roster, with online and on-property offerings set to be installed at its flagship Mohegan Sun property, ahead of potential legislation within the state.

Kristian Nylén, Kambi chief executive officer, explained: “We signed two new customers in Q1 – one based in the US and one in Europe. We outlined the signing of Rhinoceros Operations, which operates the Germany-facing Mybet brand, in our Q4 report. I’m glad to say Mybet has already launched on the Kambi Sportsbook platform.

“Towards the end of Q1, we signed Mohegan Gaming and Entertainment, the owner of Mohegan Sun, not just one of the largest entertainment resorts in the state of Connecticut, but one consistently rated among the finest in the US.

“MGE is a fantastic signing for us. As well as its size and stature, MGE is Kambi’s first Native American customer and, we hope, the first of many. There are approximately 500 Native American casinos in the US, generating around 40 per cent of the country’s casino gaming revenue, and for Kambi to be trusted to supply one of the largest Native American casinos is testament to the reputation and trust we have built since entering the US.”

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Inking a multi-channel sportsbook deal with MGE, who is in the process of constructing Project Inspire in South Korea, Kambi is to power online and on-property sportsbooks at the flagship Mohegan Sun, located in the firms home city of Uncasville.

This agreement comes ahead of potential legislation within the state, with Mohegan Sun stressing that it supports pending state legislation that could legalise the activity as early as this year.

During this process Kambi is to integrate its sportsbook into the property’s iPro gaming platform to power a free-to-play offering, allowing patrons to familiarise themselves with the product ahead of a regulated real-money launch.

Aviram Alroy, vice president of interactive gaming for Mohegan Gaming & Entertainment, explained: “Mohegan Sun’s goal is to utilise our brand and strong presence in the state and after a long vetting process, we found that Kambi was best positioned to complement that, as they’re the most sophisticated and comprehensive sportsbook out there.

“That, along with a highly experienced and responsive team, placed Kambi well above the competition in the selection of a sports betting strategic partner in Connecticut.”

This becomes the latest in a number of agreements made by Kambi in the US, with DraftKings, Rush Street Interactive, Greenwood Gaming and Entertainment and 888 already offering the its sportsbook in New Jersey and/or Pennsylvania.

Kristian Nylén, Kambi chief executive officer, said of the latest US-based agreement for the company: “Kambi’s strategy in the US is to partner with the biggest and best gaming operators each state has to offer.

“In Mohegan Sun, not only have we partnered with one of the two largest casinos in Connecticut, but also one of the leading gaming and entertainment destinations across the whole of the country.”

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