Kambi Group has announced its financial results for the second quarter of 2023 revealing revenue growth of 24% year-on-year to €42.9 million.
According to the report, revenues for the quarter were driven by an operator trading margin of 9.9% and the acquisition of front-end technology specialist Shape Games for an initial €38.5 million.
The report also lists the company’s operating profit (EBIT) for the second quarter of 2023 at €3.7 million from a margin of 8.6%. As a result, EBIT for the first half of 2023 was €8.2 million at a margin of 9.4%.
Meanwhile, earnings before interest, taxes, and amortization (EBITA) for Q2 2023 was €5 million from a margin of 11.7%. EBITA for the first half of the year came to €10.8 million at a margin of 12.4%.
Cash flow (excluding working capital and M&A) amounted to €0.1 million for Q2 2023 and €3.4 million for H1 2023 while earnings per share for Q2 2023 were €0.083 and €0.190 for H1 2023.
After tax profits dropped by 24% to €2.5 million.
Q2 saw Kambi agree an exclusive global sportsbook partnership with Bally’s Corporation replacing its proprietary sports betting technology.
The quarter also saw Kambi sign partnership extensions with BetPlay, LeoVegas and Paf.
Kambi CEO Kristian Nylén, stated:
“The second quarter of the year was another encouraging period for Kambi as we made significant strategic progress towards executing our long-term growth strategy, including a tier-one partner signing, key partner renewals and the continued development of our AI trading capability.
During the quarter we delivered strong revenue growth of 24 per cent year-on-year, driven by new customers, the addition of Shape Games and a high operator trading margin. Operator turnover growth of 4 per cent was not as strong as revenue, impacted by rising foreign exchange headwinds, the dampening effect of a high trading margin and PENN Entertainment’s year-on-year decline in US market share. Excluding the impact of foreign exchange movements, EBITA (acq) increased by €2.8m year-on-year.”
He went on to add:
“In summary, I am pleased with the strategic progress made in Q2 and believe Kambi is in a fantastic position moving forward. Having repaid the convertible bond held by Kindred during the quarter, we are in complete control over our strategic direction as we continue to execute our ambitious long-term strategy that I am confident will deliver value for both partners and shareholders.”
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