Malta, 12 February 2020
Kambi Group plc Q4 Report 2019
Financial summary
Key highlights
“I’m delighted to report another strong quarter for Kambi, which rounds off a year in which annual revenues grew by more than 20% and operator turnover by more than a third. Looking back on 2019, it was another great year for Kambi, as we continued to build out a fantastic sports betting product, expanded into multiple new markets, and signed six new partners, all of which leaves us in a great place for 2020.
In the previous report, I highlighted the momentum we could see building in operator turnover, and this trend continued in Q4 with each month delivering a greater number than the last. In total, Q4 operator turnover increased by 52% year-on-year and 36% sequentially – considerably higher volumes than Kambi has ever seen. While much of this growth was derived from our US partners, we also saw double-digit turnover growth in markets outside of the US, all of which contributed to strong revenue growth of 23%.
While the year was pleasing for many reasons, 2019 ended with news our partner DraftKings had entered into an agreement to acquire its own sports betting technology and therefore will no longer be dependent on Kambi. Our revenues from DraftKings are likely to be unaffected throughout 2020. I remain of the view that DraftKings’ long-term prospects would be better served with Kambi but also that this will increase the appeal of Kambi to an even greater level. We remain firmly committed to the US, where we have a diverse network of partners which have fantastic potential for growth, particularly as more states regulate.
We continue to prove that we are the sports betting partner operators can trust to deliver. In Q4, we launched in seven casinos and a variety of online sportsbooks across multiple jurisdictions. I’m particularly proud we were able to launch with our first US lottery, when going live in New Hampshire with DraftKings in December. I was also pleased to make our retail debut in South Africa when we launched the Kambi Sportsbook inside the Sun International-owned Grand West Casino in Cape Town.
I’ve spoken previously about the strengths of Kambi’s retail product and our ability to roll out at speed. These assets were both on display during Q4 when we successfully signed a new customer in Seneca Gaming Corporation and subsequently launched in its three New York casino properties within a matter of weeks. Seneca is a great customer signing for us. Not only is it an organisation which shares our values of trust and collaboration, but the fact it is owned by one of the most respected US Native American tribes ensures it is a partnership that will resonate within the tribal community nationwide.
The evolving nature of the sports betting industry means there will always be challenges to overcome but I know we have built a robust business with the capability and strength to withstand these pressures. We operate in a fast-growing market, one which continues to embrace regulation and will therefore present Kambi and our partners with exciting opportunities for many years to come. Be in no doubt Kambi is well positioned both in the US and globally and I look forward to a prosperous 2020.”
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:
https://financialhearings.com/event/12006
Numbers for participation in the telephone conference:
Dial-in number SE: +46850558368 UK: +443333009031 US: +18335268398
Link to the audiocast: https://tv.streamfabriken.com/kambi-group-q4-2019
Link to report page: https://www.kambi.com/investors/financial-reports-and-presentations/quarterly-reports
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
About Kambi
Kambi is a provider of premium sports betting services to licensed B2C gaming operators. Kambi Group plc is listed on First North Growth Market 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, Mohegan Gaming & Entertainment, Penn National Gaming, Rank Group and Rush Street Interactive. Kambi employs more than 850 staff across offices in Malta (headquarters), Australia, Romania, the UK, Philippines, Sweden, Australia and the United States.
Kambi utilises a best of breed security approach and is ISO 27001 and eCOGRA certified. Kambi Group plc is listed on First North Growth Market at Nasdaq Stockholm under the symbol “KAMBI”. The Company’s Certified Advisor is Redeye AB.
Redeye AB, Certifiedadviser@redeye.se, +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 12 February 2020 at 07:45 CET by CEO Kristian Nylén.
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