Kambi buoyed by busy September as Q3 revenue jumps 22%
Sports betting supplier reports 122% rise in net profit as CEO hails “inherent flexibility” of business model
Kambi has reported a 22% year-on-year rise in Q3 revenue to €28.1m (£25.3m).
The sports betting supplier’s operator turnover increased by 62% during the quarter, thanks to the resumption of sports following the international Covid-19 lockdown, events which culminated in “a busy September calendar”.
Company operating profit (EBIT) rose by 92% during the quarter to €6.5m (£5.8m), corresponding to a margin of 23.3%.
Post-tax profit at the Stockholm-listed firm rose by a whopping 122% to €5.1m (£4.5m).
“The difference between Q2 and Q3 couldn’t have been starker and underlines the ability of the business to quickly and efficiently respond not only to the lockdown situation, but also ensuring resources were in place for when sports returned,” Kambi CEO Kristian Nylen said.
“It’s reassuring for our partners to experience the capability and inherent flexibility Kambi has to adapt and thrive under testing conditions and we are confident in our ability to handle any potential future impacts that may arise from the virus.
“It’s also been reassuring to see that, despite some heightened local restrictions, there’s been no impact on high-level sports,” he added.
Addressing Kambi’s Q3 reporting period, Nylen referenced the conclusion of a supply deal with major US sports betting and horseracing business Churchill Downs and the extension of its partnership with LeoVegas as “important pieces of business” for the supplier.
Kambi also hailed the launch of Penn National Gaming’s Barstool sports app in Pennsylvania in September, something which the supplier claimed is delivered promising early performance numbers.
In respect of the LeoVegas extension, Kambi has stated the Malta-headquartered operator will migrate several of its other sportsbook brands, including BetUK and 21.co.uk, to the Kambi platform.
Highlighting the impact of Covid-19 on international sports, Kambi confirmed an increased focus on sporting integrity, as international lockdowns led to many operators shifting to lower-tier events, which are often seen as easier targets for match-fixing.
“Due to the postponement of many sports across Q2 and Q3, Kambi, as well as other companies in the industry, faced a unique challenge,” the supplier explained.
“As part of this shift, Kambi revisited its internal risk processes to ensure we continued to have complete confidence in the integrity of lower tier events offered.
“A revised methodical validation approach was implemented, where tournaments, games and players were reviewed thoroughly and senior Kambi stakeholders consulted before offering an event,” Kambi added.