Kambi Q4 Report 2016 (unaudited) Financial Summary.

• Revenue amounted to €14.3 (14.2) million for the fourth quarter of 2016 and €56.0 (47.7) million for the full year 2016, an increase of 17%
• Operating profit (EBIT) for the fourth quarter of 2016 was €1.8 (3.3) million, with a margin of 13% (23%), and €8.8 (7.4) million for the full year 2016, with a margin of 16% (16%)
• Profit after tax amounted to €1.2 (2.9) million for the fourth quarter of 2016, and €7.5 (6.2) million for the full year 2016
• Earnings per share for the fourth quarter of 2016 were €0.042 (0.099), and €0.253 (0.208) for the full year 2016
• Cash flow from operating and investing activities (excluding working capital) amounted to €1.0 (2.8) million for the fourth quarter of 2016, and €4.1 (6.2) million for the full year 2016

Key Highlights

• Solid 19% turnover growth by our operators
• Revenue was adversely affected by low margins due to football results in December favouring end users
• Agreement signed with Mexican media group Televisa for online, mobile and retail channels
• Agreement signed with Greentube – Novomatic Interactive for online sports betting across Europe
• 7 of our 13 operators included in eGaming Review’s annual Power 50 list, the most comprehensive list of the leading operators in the eGaming industry

“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.“ says Kristian Nylén, CEO of Kambi.