Kambi Group announced Wednesday its financial results for the second quarter of 2022, which showed the company’s revenue amounted to EUR 34.7 million ($35.2 million), a 19% drop year-over-year; and EUR 71.5 million ($72.5 million) for the first half of the year.
The operating profit (EBIT) for Q2 was EUR 4.9 million ($4.96 million) at a margin of 14.1%; and EUR 12.2 million ($12.3 million) at a margin of 17.1% for the first semester.
During the period, operator turnover increased by 16% when adjusting for the migration of DraftKings, leading to the final revenue in the second quarter. The company considered this past quarter as a “strong” one in financial terms, against 2021 comparatives, with numerous headwinds including the Netherlands impact, the seasonality effect of the quiet sponsoring calendar, and the DraftKings migration.
Kambi also perceived an expansion in partner networks following an online agreement with Mohegan Gaming & Entertainment and its Fallsview Casino brand in Ontario, Canada. It also signed an extended deal with Greenwood Gaming and Entertainment, which owns US multi-state operator betPARX.
In an official press release, CEO Kristian Nylen spoke about these results and said: “In Q2, Kambi delivered another positive quarter with underlying growth remaining healthy and operator turnover up 6% when adjusting for the migration of DraftKings”.
He also pointed out that this performance was achieved despite “a quieter than usual sporting calendar, particularly with the soccer World Cup taking place later in the year, outside its usual Q2 starting slot”.
“Behind the scenes, we have been working tirelessly on executing on our product strategy. Kambi’s Bet Builder offering is a good example of what we can achieve in this regard having taken a leading position in bet combinability, now a must-have for any high-quality sportsbook”, the CEO stated.
“I was delighted to see our Bet Builder product receive the recognition it deserves during Q2 when it won the innovation in Sports Betting Software award at the EGR B2B Awards, along with Kambi being recognized as the best B2B sportsbook provider once more”, he said.
However, according to Nylén, the company has only “scratched the surface” of what is possible, “and our product roadmap looks exciting as we continue to raise the bar in sports technology provision”.
He pointed out that an integral part of their product and wider company strategy is their “commitment to opening up our platform and modularising our service, enabling Kambi to increase its total addressable market”. Not only will this enable them to develop new products at greater speed, but it will also create additional revenue streams as they make available modules as a standalone service to operators outside of the network, the CEO explained.
In Q2, the company also achieved an important milestone on this modularization journey, as they focused on separating pricing functionality from their core platform and, in recent weeks, they did a soft launch of their standalone pricing functionality for a limited number of low-tier soccer leagues.
“This functionality leverages Kambi’s recently developed Trading Gateway, serving the Kambi platform as well as potentially operators outside the Kambi network, and presents partners with an opportunity to take even more control of their offering should they wish,” Nylén said.
The CEO concluded by saying: “This is an exciting time for Kambi. The product journey we are on today along with our healthy balance sheet and positive underlying financial performance means we are on a strong footing for the future. We were delighted to see Kindred relaunch in the Netherlands recently and with more product launches, partner signings and a World Cup to come, I look forward to an even greater second half of the year.”
