Kambi Group announced its financial results for the fourth quarter of 2020, which show that the company had a record quarterly performance with revenue up 76% year-on-year and operator turnover rising 77%, driven by a busy sporting calendar, exceptional operator trading margin and growth in new markets.
Revenue amounted to €46.9 (Q4 2019: 26.7) million for the fourth quarter of 2020 and €117.7 (92.3) million for the period January to December 2020.
Operating profit (EBIT) for the fourth quarter of 2020 was €22.2 (6.2) million, at a margin of 47.3% (23.1%), and €32.2 (14.7) million for the period January to December, at a margin of 27.4% (16.0%)
Profit after tax amounted to €17.3 (4.6) million for the fourth quarter of 2020 and €24.1 (10.4) million for the period January to December 2020.
Earnings per share for the fourth quarter of 2020 were €0.558 (0.152) and €0.781 (0.345) for the period January to December 2020.
Cash flow from operating and investing activities (excluding working capital movements) amounted to €20.5 (4.4) million for the fourth quarter of 2020 and €28.7 (8.6) million for the period January to December 2020.
During this period, the company demonstrated the scalability of the business model with operating margin of 47% compared with 23% in the corresponding quarter of 2019, and further strengthening of the net cash balance.
During the quarter, Kambi supported Rush Street Interactive and DraftKings with online launches into the US states of Iowa and Tennessee respectively.
Kambi agreed two new partnership agreements, signing with the Belgian National Lottery and JVH Gaming and Entertainment in the Netherlands.
"As we reflect on what has been exceptionally challenging 12 months, it’s particularly pleasing to complete the year with a record Q4 performance and annual revenues up by 28%. At the start of 2020, full year revenue of €117.7m would have been deemed a great success, so to have delivered such a performance, in spite of the sporting calendar being severely impacted for the best part of four months, speaks volumes for the business we have created, our talented people and the upward trajectory we are on," the report reads.
"Kambi finished the year in fine fashion, with year-on-year Q4 revenue up by 76% to €46.9m and operator turnover rising 77% at an operator trading margin of 9.4%. The Kambi Operator Turnover Index came in at 989 which was a clear all-time high, while our business model illustrated the scalability it possesses with an operating margin of 47%."
"The US continues to be a success story, with Q4 delivering expansion into Tennessee’s online market and three on-property launches across Michigan and Mississippi. Our US-facing partners are increasingly leveraging Kambi’s differentiation capabilities in areas including risk, pricing and front-end, to forge unique paths in their respective markets. With major states such as Texas and New York now looking closely at online sports betting, it’s clear Kambi’s US journey is in its early stages."
"Our strong growth means Kambi is now operating at a scale like never before, which in turn allows the Kambi sportsbook and service to continuously evolve," said Kambi chief executive Kristian Nylén. "The powerful partner network we have created, with fantastic partners from around the globe, produces ever increasing amounts of unique data, from which we can draw valuable insights to help us improve and continue to offer a high-performance sportsbook."
"Over the past few months, and despite restrictions on travel, we have successfully grown the global network with four new partners. While the November signing of the Belgium National Lottery was addressed in our Q3 report, we closed out the year with the addition of JVH Gaming and Entertainment in December. JVH is the largest private casino group in the Netherlands, a country we expect to introduce a new regulatory framework later this year," he continued.
"In recent weeks, we have signed partnership agreements with Racing and Wagering Western Australia and Argentinian casino operator Casino Magic and we look forward to launching with all our new partners in the coming months. While there is understandably great attention given to the promise of the US market, this quartet of partnerships, spread across three continents, underlines the exciting opportunities that lie in other corners of the world and cements Kambi’s position as the global market leader.
"In summary, it’s been a year that’s shown that when working together, we can find the right responses to the toughest of challenges. The Kambi model is based on partnership, on sharing, on working together with our partners to ensure they have the best chance of success. The model was undoubtedly stress-tested in 2020 but it passed with flying colors, leaving me more excited than ever about Kambi’s future," he concluded.