Kambi revenue dips 19% as tough comps and loss of DraftKings take their toll
Supplier also notes downturn for EBITDA and post-tax profit as it looks to future with new partnerships and the Netherlands
Kambi has posted a 19% year-on-year (YoY) slip in Q2 revenue as a smaller sporting calendar and the departure of DraftKings impacted operations.
The Stockholm-listed supplier recorded revenue of €34.7m for the reporting period, down from €42.8m in Q2 2021, with “demanding 2021 comparatives” cited as a core reason for the decline.
The firm’s limited presence in the Netherlands was also highlighted, which has now been boosted by Kindred Group’s return to the market with its Unibet.nl brand.
Breaking down revenue by region, the Americas continued to be the largest market for the company, returning 54% of total revenue, down from its 58% share in Q2 2021.
Europe accounted for 43% of revenue, up from 40% in 2021, while the rest of the world segment increased its revenue share from 2% to 3%.
Noting the loss of DraftKings, which migrated from Kambi to its in-house tech stack, Kambi said operator turnover increased by 16% YoY when adjusting for the US operator’s departure.
Q2 2021 had also been boosted by Euro 2020, while operator trading margin fell from 9.3% to 8.6% YoY.
Elsewhere, EBITDA plummeted 47% YoY from €21.8m to €11.6m, with a corresponding decrease in EBIT margin from 38.8% to 14.1%.
Post-tax profit also tumbled 75% from €13.4m to €3.3m.
Kambi continued its efforts to bolster its operator roster throughout Q2, inking partnerships with the likes of Mohegan Gaming and Entertainment, and Greenwood Gaming and Entertainment.
Touching on the Q2 performance, CEO Kristian Nylén highlighted underlying growth and its plans for product development.
He said: “In Q2, Kambi delivered another positive quarter with underlying growth remaining healthy and operator turnover up 16% when adjusting for the migration of DraftKings. This performance was achieved despite a quieter than usual sporting calendar, particularly with the World Cup taking place later in the year, outside its usual Q2 starting slot.
“We have only scratched the surface of what is possible, and our product roadmap looks exciting as we continue to raise the bar in sports technology provision. Integral to our product and wider company strategy is our commitment to opening up our platform and modularising our service, enabling Kambi to increase its total addressable market,” he added.
Kambi’s share price was flat at SEK181 at the time of writing after jumping 4% in early trading.