Kambi kicked off the year in positive fashion with Q1 2018 delivering double-digit revenue growth, a strategic investment in a virtual sports company and the signing of a new customer. In addition, since the end of the quarter, we added another operator to the Kambi network, stretching our run of new customer wins to an impressive 10 consecutive quarters.

The Q1 metrics were encouraging as we continued to build upon the momentum gained during the second half of 2017. Kambi revenue grew 15% year-on-year, while operating profit increased by 42%. In Q1, operator trading margin was higher than our long-term expected average at 7.9%, albeit down from the unusually high operator trading margin of 9.7% in Q4 2017.   

In March, we signed our 16^th customer in Casumo. As an innovative and gamification-led operator, Casumo sought a sportsbook solution which could give them the ability to create a betting product true to their brand. The Kambi platform is unique in that it promotes operator innovation so Casumo is seen as a good fit for us and I’m delighted to have them join the Kambi network.

Meanwhile, last week we signed a multi-channel deal with Stanleybet Romania, one of the most recognised and respected sports betting brands in the regulated Romanian market. This is a significant deal for Kambi with Stanleybet Romania initially migrating its online players to the Kambi platform ahead of installing Kambi’s full suite of retail products across its 300-plus retail stores. To sign two vastly different customers with very different requirements highlights the Kambi Sportsbook’s ability to satisfy a wide spectrum of operators and player segments.      

Finally, in February we made a strategic investment into virtual sports developer and supplier Virtus Sports. We believe this deal will strengthen the Kambi offering through the addition of a virtual sports product growing in popularity.

With a World Cup around the corner and preparations for the potential opening of a US market progressing well, the levels of excitement and optimism at Kambi continue to grow.

Financial summary

• Revenue amounted to €16.4 (14.2) million for the first quarter of 2018
• Operating profit (EBIT) for the first quarter of 2018 was €2.0 (1.4) million,
• with a margin of 12% (10%)
• Profit after Tax amounted to €1.5 (1.1) million for the first quarter of 2018
• Earnings per share for the first quarter of 2018 were €0.051 (0.036)
• Cash flow from operating and investing activities (excluding working capital) amounted to €0.6 (0.8) million for the first quarter of 2018

Key highlights

• Strong financial performance with 15% year-on-year revenue growth
• Signed two new customers: Casumo in Q1 and Stanleybet Romania in Q2, extending our run of new business wins to 10 consecutive quarters
• Acquired stake in virtual sports start-up Virtus Sports for €569,000