Malta, 26 October 2018
Kambi Group plc Q3 Report 2018
- Revenue amounted to €20.5 (14.8) million for the third quarter of 2018, and €54.5 (43.1) million for the period January to September 2018
- Operating profit (EBIT) for the third quarter of 2018 was €4.2 (1.1) million, with a margin of 20.3% (7.2%), and €8.5 (2.7) million for the period January to September 2018, with a margin of 15.7% (6.3%)
- Profit after Tax amounted to €3.3 (0.8) million for the third quarter of 2018, and €6.5 (2.0) million for the period January to September 2018
- Earnings per share for the third quarter of 2018 were €0.109 (0.026), and €0.216 (0.066) for the period January to September 2018
- Cash flow from operating and investing activities (excluding working capital) amounted to €3.3 (0.6) million for the third quarter of 2018, and €5.8 (0.9) million for the period January to September 2018
- Record financial performance with 39% year-on-year revenue growth and 31% operator turnover growth
- Signed three new customers: ATG, Latvijas Loto and Global Gaming
- Became the first sports betting supplier to process a legal online wager in the US post-PASPA
- Quickly gained market leadership position in New Jersey following August launch
"This time last year I described Q3 2017 as a 'springboard' quarter for Kambi, and what's followed has been a period of sustained growth, leading to what can only be regarded as an historic Q3 2018 for the company.
Overall, the business has never been in better shape, illustrated by a record quarterly performance. Kambi revenue grew by almost 40% year-on-year, while operator turnover increased by more than 30% to its highest level. In fact, turnover growth was so strong that Q3 2018 was the first Q3 in which we saw sequential turnover growth during a year featuring a major summer international football tournament.
In August, Kambi made its US debut and in doing so created history when becoming the first company to process a legal online bet in the country outside of Nevada, following the launch of New Jersey's regulated market. We are already live with three brands in New Jersey - DraftKings, SugarHouse (Rush Street Interactive) and 888sport - which is not only a great achievement in itself but, according to the regulator's recently released September figures, equates to Kambi-powered operators having a c.70% share of the online market.
It's been a fantastic start in the US for Kambi, which I believe reflects an enthusiasm for the high-quality Sportsbook experiences we offer, which we hope to bring to players in additional states shortly. I've recently returned from a major gaming exhibition in the US where, following our early success in New Jersey, the interest in Kambi was at an unprecedented level. It is for this reason we plan to continue to invest in areas such as talent, technology and licensing so we can maximise the opportunity presented by the gradual state-by-state roll-out of regulated sports betting across the country.
While the US is very much the main strategic focus, we continue to grow strongly throughout the network and across multiple markets. Customers old and new are benefiting from the Kambi Sportsbook, enabling them to attain or vie for market leadership. Meanwhile, in Q3 we strengthened the network further with three European-based customers - ATG, Global Gaming and Latvijas Loto - bringing us to seven new customer signings for the year.
With our existing business as strong as it ever has been, and Kambi establishing itself as the pre-eminent sports betting supplier in the developing US market, these are certainly exciting times for all involved with the business."
You are invited to participate in a report presentation at 10:45 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 or sent via the audiocast link. Please see details in the link below:
Numbers for participation in the telephone conference:
SE: +46 8 566 426 62 UK: +44 203 008 9811 ES: +34 9 1414 07 82
US: +1 855 753 2236
No pin required.
Link to the audiocast: https://tv.streamfabriken.com/kambi-group-q3-2018
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 22 customers include 888, ATG, DraftKings, Kindred Group, LeoVegas, Napoleon Games and Rush Street Gaming. Kambi employs approximately 700 staff across offices in Malta (headquarters), Bucharest, London, Manila, Stockholm and Sydney.
Kambi utilises a best of breed security approach. Kambi is a member of WLA, EL, Cibelae and is eCOGRA and ISO 27001 certified. Kambi Group plc is listed on First North at Nasdaq Stockholm under the symbol "KAMBI". The Company's Certified Advisor is Redeye AB.
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 and the Swedish Securities Market Act.
The information in this release was sent for publication on Friday, 26 October 2018 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