Kambi yields impressive results
Kambi Group today published its financial results for the final quarter of 2017, announcing a 33% increase in revenue.
Kambi CEO, Kristian Nylén said, I’m delighted to report Kambi ended 2017 on a high, with the fourth quarter delivering record revenues, a new customer signing and three customer contract extensions. We are entering 2018 with strong momentum.
The period’s headline figure was the 33% increase in revenues to €19m, Kambi’s largest quarterly revenue to date. This sizeable increase was primarily due to an extended run of favourable sporting results, which started in Q3 but continued into Q4 with even greater regularity, resulting in a high operator trading margin of 9.7%.
While the Q4 result is pleasing, it is important to view operator trading margin with a long-term perspective. Our 12-month operator trading margin was 7.4%, a figure more in line with our previously communicated expected range of 6.5-7%. Therefore, just as we weren’t overly concerned by below average margins in the first two quarters of 2017, we are not getting carried away with the higher than average margins of recent quarters.
A consequence of a higher operator trading margin is lower operator turnover growth – when results favour operators, as they frequently did in Q4, players have less money in their betting accounts to play with. Despite this suppressing factor, Kambi operator turnover grew year-on-year.
The quarter also saw Kambi continue its run of new business wins, with the signing of Sun International making it eight consecutive quarters in which we have signed at least one new customer. As one of the largest and most respected land-based casino operators in the southern hemisphere, Sun International is a great addition to the Kambi network. Sun International also operates a South Africa-facing online sportsbook which, once switched to Kambi in the coming months, will increase our regulated footprint to six continents, making Kambi a truly global sports betting supplier.
With LeoVegas, Paf and Napoleon Games all signing long-term contract extensions, and an increasingly realistic proposition of a legal US sports betting market in the not-too-distant future, Kambi has never been in better shape and I’m personally excited for the year ahead.”