Kambi reports record quarter with operator turnover up 31%
Kambi posted record revenue to €20.5 (14.8) million for the third quarter of 2018, and €54.5 (43.1) million for the period January to September 2018.
Operating profit (EBIT) for the third quarter of 2018 was €4.2 (1.1) million, with a margin of 20.3% (7.2%), and €8.5 (2.7) million for the period January to September 2018, with a margin of 15.7% (6.3%). Profit after Tax amounted to €3.3 (0.8) million for the third quarter of 2018, and €6.5 (2.0) million for the period January to September 2018.
Earnings per share for the third quarter of 2018 were €0.109 (0.026), and €0.216 (0.066) for the period January to September 2018. Cash flow from operating and investing activities (excluding working capital) amounted to €3.3 (0.6) million for the third quarter of 2018, and €5.8 (0.9) million for the period January to September 2018 .
“This time last year I described Q3 2017 as a ‘springboard’ quarter for Kambi, and what’s followed has been a period of sustained growth, leading to what can only be regarded as an historic Q3 2018 for the company.
Overall, the business has never been in better shape, illustrated by a record quarterly performance. Kambi revenue grew by almost 40% year-on-year, while operator turnover increased by more than 30% to its highest level. In fact, turnover growth was so strong that Q3 2018 was the first Q3 in which we saw sequential turnover growth during a year featuring a major summer international football tournament.
In August, Kambi made its US debut and in doing so created history when becoming the first company to process a legal online bet in the country outside of Nevada, following the launch of New Jersey’s regulated market. We are already live with three brands in New Jersey – DraftKings, SugarHouse (Rush Street Interactive) and 888sport – which is not only a great achievement in itself but, according to the regulator’s recently released September figures, equates to Kambi-powered operators having a c.70% share of the online market.
It’s been a fantastic start in the US for Kambi, which I believe reflects an enthusiasm for the high-quality Sportsbook experiences we offer, which we hope to bring to players in additional states shortly. I’ve recently returned from a major gaming exhibition in the US where, following our early success in New Jersey, the interest in Kambi was at an unprecedented level. It is for this reason we plan to continue to invest in areas such as talent, technology and licensing so we can maximise the opportunity presented by the gradual state-by-state roll-out of regulated sports betting across the country.
While the US is very much the main strategic focus, we continue to grow strongly throughout the network and across multiple markets. Customers old and new are benefiting from the Kambi Sportsbook, enabling them to attain or vie for market leadership. Meanwhile, in Q3 we strengthened the network further with three European-based customers – ATG, Global Gaming and Latvijas Loto – bringing us to seven new customer signings for the year.
With our existing business as strong as it ever has been, and Kambi establishing itself as the pre- eminent sports betting supplier in the developing US market, these are certainly exciting times for all involved with the business” said CEO Kristian Nylén.