Kambi share price jumps on predicted 80% Q4 revenue rise

Kambi expects to nearly double its Q4 revenue year-on-year (YoY) to between €46m (£41.5m) and €48m, according to the supplier’s latest trading update.

The group issued a reverse profit warning and is anticipating an annual increase in revenue of up to 80% after reporting €26.7m in Q4 2019.

The sports betting supplier pointed towards “an extended run of favourable sporting results across multiple sports and all key markets” as the principal reason for the positive trading update.

Kambi said it expects to record an operator trading margin of 9.4% in Q4, representing a 2% increase on last year.

Kambi also noted that its Q4 EBIT is expected to significantly exceed 2019 levels, jumping from €6.2m in 2019 to between €21m and €24m in 2020, while full-year EBIT is expected to be in the range of €31m and €34m, up from €14.7m in 2019.

However, the supplier does expect to see operating expenditure for the reporting period increase by up to €4.5m for Q4 2020 due to “additional social security costs”.

Kambi estimates that Q4 2020 operating expenditure could land between €24m and €25m, up from €20.5m in Q4 2019, due to costs related to its share options programmes.

The supplier concluded that, looking forward, it expected operating expenditure for Q1 2021 to be in the range of €23.5m and €24.5m.

Kambi will release its full financial report for Q4 2020 on 10 February 2021. Its share price increased to almost 10% in early trading.