Malta, 14 February 2018
- Revenue amounted to €19.0 (14.3) million for the fourth quarter of 2017, and €62.1 (56.0) million for the period January to December 2017
- Operating profit (EBIT) for the fourth quarter of 2017 was €5.0 (1.8) million,with a margin of 26% (13%), and €7.7 (8.8) million for the period January to December 2017, with a margin of 12% (16%)
- Profit after Tax amounted to €3.9 (1.2) million for the fourth quarter of 2017, and €5.9 (7.5) million for the period January to December 2017
- Earnings per share for the fourth quarter of 2017 were €0.131 (0.042), and €0.198 (0.253) for the period January to December 2017
- Cash flow from operating and investing activities (excluding working capital) amounted to €3.8 (1.0) million for the fourth quarter of 2017, and €4.7 (4.1) million for the period January to December 2017
- Strong performance with 33% year-on-year revenue growth producing record quarterly revenues
- Signed long-term contract extensions with LeoVegas, Paf and Napoleon Games
- Signed a multi-channel deal with South Africa-based casino group Sun International, the eighth consecutive quarter in which Kambi has added at least one new customer
"I'm delighted to report Kambi ended 2017 on a high, with the fourth quarter delivering record revenues, a new customer signing and three customer contract extensions. We are entering 2018 with strong momentum.
The period's headline figure was the 33% increase in revenues to €19m, Kambi's largest quarterly revenue to date. This sizeable increase was primarily due to an extended run of favourable sporting results, which started in Q3 but continued into Q4 with even greater regularity, resulting in a high operator trading margin of 9.7%.
While the Q4 result is pleasing, it is important to view operator trading margin with a long-term perspective. Our 12-month operator trading margin was 7.4%, a figure more in line with our previously communicated expected range of 6.5-7%. Therefore, just as we weren't overly concerned by below average margins in the first two quarters of 2017, we are not getting carried away with the higher than average margins of recent quarters.
A consequence of a higher operator trading margin is lower operator turnover growth - when results favour operators, as they frequently did in Q4, players have less money in their betting accounts to play with. Despite this suppressing factor, Kambi operator turnover grew year-on-year.
The quarter also saw Kambi continue its run of new business wins, with the signing of Sun International making it eight consecutive quarters in which we have signed at least one new customer. As one of the largest and most respected land-based casino operators in the southern hemisphere, Sun International is a great addition to the Kambi network. Sun International also operates a South Africa-facing online sportsbook which, once switched to Kambi in the coming months, will increase our regulated footprint to six continents, making Kambi a truly global sports betting supplier.
With LeoVegas, Paf and Napoleon Games all signing long-term contract extensions, and an increasingly realistic proposition of a legal US sports betting market in the not-too-distant future, Kambi has never been in better shape and I'm personally excited for the year ahead."
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: https://financialhearings.com/event/10444
Numbers for participation in the telephone conference:
SE: +46856642662 ES: +34914140782 UK: +442030089811 US: +18557532236
Link to the audiocast: https://tv.streamfabriken.com/kambi-group-q4-2017
Kambi is a provider of premium sports betting services to licensed B2C gaming and gambling 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 15 customers include Unibet, 888, Paf, and Napoleon Games. Kambi employ more than 600 staff across offices in Malta (headquarters), Bucharest, London, Manila, Stockholm and Sydney. www.kambi.com
Kambi utilises a best of breed security approach, and is ISO 27001and 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.
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.
Kambi Group plc contacts:
Kristian Nylén, Chief Executive Officer
David Kenyon, Chief Financial Officer
+44 75 5756 8729