Kambi CEO Addresses "Major Challenges" After Disappointing 2024 Performance

### Kambi’s Revenue Performance and Future Outlook

Kambi’s revenue for the 12 months ending 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), according to the earnings released today (26 February). This represents an increase of 1.8% compared to the previous year.

Though the growth was modest, Becher described the period as a “transitional” and “transformative” year for the supplier. The CEO began his tenure in July, succeeding the long-serving Kristian Nylén, whose departure was confirmed in January.

Following Nylén’s announcement of his resignation, he expressed dissatisfaction with Kambi’s performance in 2023. Despite reporting a revenue rise, net profit and EBITDA were lower than the previous year.

This year, Becher appeared more positive about the group’s achievements over the past 12 months. He emphasized the supplier’s recent efforts to diversify its revenue streams.

However, Becher also warned of upcoming challenges in 2025 as some partners, particularly Kindred and LeoVegas, plan to shift away from Kambi’s turnkey sportsbook. He also raised concerns about the recently approved temporary VAT in Colombia as a potential issue for the group.

“This year won’t be without significant challenges, with 2025 presenting a particular set of headwinds, which we expect to ease going forward,” Becher said.

“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

For 2024, marginal revenue growth was supported by several factors. These included adding Hard Rock Digital and Rei do Pitaco to Kambi’s Odds Feed+ services, as well as Kwiff utilizing its Bet Builder services.

Kambi also added several partners to its turnkey sportsbook product, such as KTO Group, Choctaw Nation, VIP Play Inc, and Week Creek Hospitality during the 12-month period. Additionally, key partners Rush Street Interactive and Sun International renewed contracts, alongside Penn Entertainment for its retail sportsbook network.

However, challenges arose from Penn’s online migration initiated in 2023. Kambi also faced new deposit limits in the Netherlands and new gaming taxes in Sweden, while partner Kindred Group exited various markets.

### Bottom-Line Improvement in 2024

EBITDA increased by 5.5% to €59.7 million, while operating profit (EBIT) remained flat compared to the previous year at €20.1 million with a margin of 11.4%.

Total costs were only 2% higher year-on-year. Yet, restructuring costs added to Kambi’s expenses, leading to a pre-tax profit decline of 5% to €19 million.

On a brighter note, income tax payments were lower in 2024, resulting in an improved bottom line. Net profit for the year totaled €15.4 million, a 3.4% improvement on the previous year.

The supplier ended the year with a cash flow of €25.9 million, reflecting a 73% increase over 2023.

### Mixed Performance in Q4

In the final quarter of 2024, revenue increased by 0.5% year-on-year to €44.5 million. During this period, Kambi acquired several new clients, including Wind Creek Hospitality and VIP Play Inc.

However, total expenses rose 3.8% to €38.5 million. After accounting for other costs, including restructuring expenses, pre-tax profit dropped 40% to €4.5 million.

Kambi paid €519,000 in income tax, resulting in a net profit of €5.1 million in Q4, down 7.3%. Additionally, EBITDA fell 5.9% to €16 million.

### Expectations for 2025

In addition to its 2024 performance, Kambi provided insights into expectations for the coming year.

The headline guidance is EBITA in the range of €20 million to €25 million, nearly aligning with the €25.3 million posted in 2024. While costs will likely be higher in some areas, these will be passed on to partners, and thus Kambi stated this should not impact EBITA.

Kambi anticipates revenue tailwinds from organic growth within the operator network, with notable contributions expected from LiveScore and Svenska Spel.

However, revenue might be affected by certain headwinds, such as the end of transition fees received during 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 program—along with our various partner signings, provide a solid platform for the future,” Becher said.

“The foundations we are building…”