Malta, 24 April 2019
Kambi Group plc Q1 Report 2019
- Revenue amounted to €21.0 (16.4) million for the first quarter of 2019, an increase of 28%
- Operating profit (EBIT) for the first quarter of 2019 was €2.6 (2.0) million, with a margin of 12.4% (12.0%)
- Profit after Tax amounted to €2.0 (1.5) million for the first quarter of 2019
- Earnings per share for the first quarter of 2019 were €0.066 (0.051)
- Cash flow from operating and investing activities (excluding working capital) amounted to €1.1 (0.6) million for the first quarter of 2019
- Strong financial performance with 28% year-on-year revenue growth and 46% operator turnover growth
- Signed two new customers: Mohegan Gaming & Entertainment in Connecticut, USA, and Rhinoceros Operations (mybet) in Germany
- Launched three on-property sportsbooks in Pennsylvania with Greenwood Gaming & Entertainment and established early market leadership position
“Following a hugely successful 2018, I’m pleased to report 2019 kicked-off in similarly positive fashion for Kambi. Building on our tremendous achievements last year, we continue to reach new heights with Q1 2019 one of our best quarters yet, featuring new customer signings, numerous customer roll-outs, continued financial growth and multiple industry awards.
The Q1 financial numbers were again strong. Kambi revenue increased 28% year-on-year and operator turnover grew by 46%. The majority of turnover growth came from customers operating outside of the US, underlining what was a strong performance from our existing roster of global customers.
We signed two new customers in Q1 – one based in the US and one in Europe. We outlined the signing of Rhinoceros Operations, which operates the Germany-facing mybet brand, in our Q4 report. I’m glad to say mybet has already launched on the Kambi Sportsbook platform. Towards the end of Q1, we signed Mohegan Gaming & Entertainment (MGE), the owner of Mohegan Sun, not just one of the largest entertainment resorts in the state of Connecticut, but one consistently rated among the finest in the US.
MGE is a fantastic signing for us. As well as its size and stature, MGE is Kambi’s first Native American customer and, we hope, the first of many. There are approximately 500 Native American casinos in the US, generating around 40% of the country’s casino gaming revenue, and for Kambi to be trusted to supply one of the largest Native American casinos is testament to the reputation and trust we have built since entering the US.
In addition to growing our existing customers, expansion in the nascent US market continues to be one of Kambi’s main strategic priorities. As expected, the regulation of sports betting state-by-state has been a slow process but one which may pick up in the coming months as states push for legislation ahead of the start of the next NFL season in September. Of more importance is that states regulate the right way. As we have seen in New Jersey, where mobile betting represents 80% of the market, online regulation is key if states are to channel players away from the illegal market into a safe and regulated environment.
Finally, I’m pleased to say our early success in the US hasn’t gone unnoticed. Earlier this month, Kambi topped two major categories at the EGR North America Awards in Atlantic City, winning both the Sportsbook Platform Provider and Sports Betting Supplier prizes against strong fields. It’s pleasing to see the fantastic progress we have made in the US receive recognition from the judges. The awards are a reflection of the hard work put in by everyone at Kambi, as well as the visionary operators using our Sportsbook.”
You are invited to participate in a report presentation at 10.45 (CET) with Kambi Group plc's CEO Kristian Nylén and CFO David Kenyon. The presentation will be held in English via a telephone conference and can also be accessed via an audiocast using the link below.
Questions can be asked on the telephone conference or sent via the audiocast link. Please see details in the link below:
Numbers for participation in the telephone conference:
SE: +46856642707 UK: +443333009260 US: +18446251570
No pin required.
Link to the audiocast: https://tv.streamfabriken.com/kambi-group-q1-2019
Kambi is a provider of premium sports betting services to licensed B2C gaming operators. Kambi Group plc is listed on First North at Nasdaq Stockholm. Our services encompass a broad offering from front-end user interface through to odds compiling, customer intelligence and risk management, built on an in-house developed software platform. Kambi’s 20-plus customers include 888 Holdings, ATG, DraftKings, Greenwood Gaming & Entertainment, Kindred Group, LeoVegas, Napoleon Games and Rush Street Interactive. Kambi employs more than 700 staff across offices in Malta (headquarters), Romania, the UK, Philippines, Sweden, Australia and the United States.
Kambi utilises a best of breed security approach, with guiding principles from ISO 27001. Kambi is eCOGRA certified. Kambi Group plc is listed on First North at Nasdaq Stockholm under the symbol "KAMBI". The Company's Certified Advisor is Redeye AB.
+46 (0)8 121 576 90
Disclaimer: The information in this report/press release is such that Kambi Group plc is required to disclose under the EU Directive of Market Abuse Regulation.
The information in this release was sent for publication on Wednesday, 24 April 2019 at 07:45 CET by CEO Kristian Nylén.
Kambi Group plc contacts:
Kristian Nylén, Chief Executive Officer
David Kenyon, Chief Financial Officer
Mia Nordlander, Head of Investor Relations
Tel: +44 203 617 7270
+44 785 091 0933