Malta, 27 October 2017
- Revenue amounted to €14.8 (14.8) million for the third quarter of 2017, and €43.1 (41.7) million for the period January to September 2017
- Operating profit (EBIT) for the third quarter of 2017 was €1.1 (3.1) million, with a margin of 7% (21%), and €2.7 (7.0) million for the period January to September 2017, with a margin of 6% (17%)
- Profit after Tax amounted to €0.8 (2.7) million for the third quarter of 2017, and €2.0 (6.3) million for the period January to September 2017
- Earnings per share for the third quarter of 2017 were €0.026 (0.092), and €0.066 (0.211) for the period January to September 2017
- Cash flow from operating and investing activities (excluding working capital) amounted to €0.6 (1.6) million for the third quarter of 2017, and €0.9 (3.1) million for the period January to September 2017
- Continued strong performance with operator turnover growth of 16%
- In July, Kambi signed a multi-year agreement with National Lottery AD in Bulgaria
- In October, Kambi extended its contracts with LeoVegas and Paf
"In many ways, Q3 could be viewed as a springboard quarter for Kambi. I'm pleased to report Kambi was able to continue its progress, with operator turnover rising 16% year-on-year versus a period which included the final stages of Euro 2016 and the Olympic Games.
Furthermore, this growth was delivered in the context of an unusually high operator margin of 7.5%, and means our margin for the first nine months of the year is 6.6% - a figure which falls within our projected annual range of 6.5-7%. This strengthens our belief that while margins will fluctuate due to the outcome of sporting events, we don't see any long-term trends that suggest any continued downward pressure.
The period saw us face a particularly tough revenue comparative in terms of both an equally strong trading margin in Q3 2016 and the impact of the 888sport contract renewal. Despite these factors, we still managed to post revenues on a par with Q3 last year.
I'm pleased that I can once again say we have signed a new partner, this time in the shape of Bulgaria's National Lottery, the country's largest privately-owned gaming operator. This represents the seventh consecutive quarter in which Kambi has added a new customer. We will provide National Lottery's online 7777.bg brand, a market leader in gaming products, with our Sportsbook. Kambi is delighted to have been chosen by National Lottery and we expect to launch during the current quarter.
I'm also delighted to confirm Kambi has agreed extended deals with both LeoVegas and Paf for the long-term. Contract renewals are always pleasing, as they re-affirm the strength and relevance of the Kambi product, as well as the strong relationships we foster with our customers.
In addition, Kambi launched with Greentube in Italy and Romania and with LeoVegas in Germany, while Mr Green unveiled a new version of its Kambi-powered Sportsbook, which takes full advantage of our empowerment capabilities and places a focus on our market-leading Instant Betting tennis product.
In light of the evolving landscape, this quarter also saw us complete an in-depth strategic review of the business. This led to improvements to our strategy, processes and organisational structure, and re-affirmed our belief that we possess a unique capacity to build a high-performance Sportsbook.
Finally, it was pleasing to see six of Kambi's customers ranked within the top 40 of EGR's annual Power 50 rankings this week, and all of the developments I've mentioned underline the quality, scalability and flexibility of the Kambi Sportsbook, giving us great confidence for the future," says Kristian Nylén, CEO of Kambi.
You are invited to participate in a report presentation at 11:30 CET with the 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. Please see details in the link below:
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Kambi Group plc is a B2B supplier of managed sports betting services on a proprietary software platform, providing premium turnkey sports betting services to gaming operators. Kambi's product encompasses a broad offering from front end through to odds compiling and risk management. The company's current coverage includes more than 185,000 live betting events and 300,000 pre-match events per year covering 65 different sports from all over the world. 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". Kambi's Certified Advisor is Redeye AB.
The information in this report is such that Kambi Group plc is required to disclose under the EU Directive of Market Abuse Regulation, the Swedish Securities Market Act and rules for companies listed on the First North at Nasdaq Stockholm.
The information in this report was sent for publication on Friday, 27th October 2017 at 07:45 CET by CEO Kristian Nylén.