Kambi CEO Warns of "Significant Challenges" Amid Uncertain 2024 Forecast

**Kambi’s 2024 Revenue Report**

Kambi’s revenue for the year ending 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), as noted in its earnings released today (26 February). This represents a modest increase of 1.8% compared to the previous year.

Despite the marginal growth, Becher described the year as “transitional” and “transformative” for the company. Becher commenced his role as CEO in July, succeeding the long-serving Kristian Nylén, whose departure was confirmed earlier in January.

Nylén, shortly after announcing his departure, had expressed dissatisfaction with Kambi’s 2023 performance. Although revenue had increased, both net profit and EBITDA saw declines from the previous year.

Reflecting on the past year, Becher expressed a more positive outlook regarding the group’s achievements, particularly highlighting efforts to diversify its revenue streams.

Nevertheless, Becher warned of challenges for 2025, especially as partners like Kindred and LeoVegas transition away from Kambi’s turnkey sportsbook. He also pointed out the newly approved temporary VAT in Colombia as a potential issue.

“This year won’t be without significant challenges, with 2025 presenting a particular set of headwinds, which we expect to ease going forward,” stated Becher. “As previously announced, we are actively taking action to manage costs and are continuing to diversify our revenue streams through product expansion.”

**Marginal Growth for Kambi**

In 2024, Kambi’s marginal revenue growth was supported by several factors. The addition of Hard Rock Digital and Rei do Pitaco to Kambi’s Odds Feed+ services, as well as Kwiff adopting its Bet Builder services, contributed to this growth.

Additionally, Kambi included several partners in its turnkey sportsbook product over the year, such as KTO Group, Choctaw Nation, VIP Play Inc, and Week Creek Hospitality. Key partners like Rush Street Interactive and Sun International renewed their contracts, and Penn Entertainment extended its agreement for its retail sportsbook network.

Challenges included the impact from Penn’s online migration initiated in 2023. Kambi also contended with new deposit limits in the Netherlands and gaming taxes in Sweden, alongside Kindred Group’s market exits.

**Bottom-Line Improvement in 2024**

EBITDA grew by 5.5% to €59.7 million, while operating profit (EBIT) remained flat at €20.1 million at a margin of 11.4%.

Total costs saw a mere 2% increase year-on-year. However, restructuring expenses raised Kambi’s outgoings, causing pre-tax profit to dip by 5% to €19 million.

On a positive note, lower income tax payments in 2024 contributed to an improved bottom line, with net profit amounting to €15.4 million, a 3.4% increase over the previous year.

The company closed the year with a cash flow of €25.9 million, a significant 73% increase from 2023.

**Mixed Outcome for Kambi in Q4**

In Q4 2024, revenue increased by 0.5% year-on-year to €44.5 million. During this quarter, Kambi onboarded new clients, including Wind Creek Hospitality and VIP Play Inc.

Nonetheless, total expenses rose by 3.8% to €38.5 million, and after including other costs like restructuring expenses, pre-tax profit plummeted by 40% to €4.5 million.

Kambi incurred €519,000 in income tax, leaving a net profit of €5.1 million in Q4, a decline of 7.3%. Moreover, EBITDA decreased by 5.9% to €16 million.

**Expectations for 2025**

Looking ahead, Kambi provided insights into its expectations for the next year.

The company forecasts EBITA in the range of €20 million to €25 million, aligning closely with the €25.3 million posted in 2024. Kambi anticipates that certain costs will rise; however, these will be passed on to partners, not affecting EBITA.

Revenue growth is expected to get a boost from organic growth within the operator network, particularly from full-year contributions from LiveScore and Svenska Spel.

Nevertheless, revenue may be affected by headwinds such as the cessation of transition fees received in 2024 and the proposed temporary VAT on deposits in Colombia.

“Looking further ahead, the strategic initiatives we have undertaken – advancing AI innovation, expanding our product portfolio and initiating a cost efficiency programme – along with our various partner signings, provide a solid platform for the future,” Becher explained. “The foundations we are building today will enable us to emerge stronger, more agile and well-positioned for long-term growth.”

Kambi Group’s 2024 revenue remained stable as CEO Werner Becher highlighted the “significant challenges” anticipated for the