Kambi shares down as CEO admits Q1 performance was below expectations

Kambi has reported revenue of €41.5m (£35.3m) for the first quarter of 2025, representing a 4% year-on-year (YoY) dip, as CEO Werner Becher said the firm was continuing to “build the foundations for long-term success”.

However, when excluding €4.4m worth of transition fees which the supplier received in Q1 2024 from PENN Entertainment and Napoleon Sports & Casino, revenue increased by 7% YoY.

The supplier noted that new deposit limits introduced in the Netherlands, as well as “increased gaming-related taxes in multiple jurisdictions and new commercial terms of certain renewed contracts” had a negative impact on Q1.

The Stockholm-listed supplier’s shares have slipped this morning, down almost 9% at the time of writing to SEK107.4

Adjusted EBITDA for Q1 dropped 22% YoY to €11.1m, with an adjusted EBITDA margin of 26.7%. Although, adjusted EBITDA (acq) slipped 60% to €2.3m.

Additionally, operating profit for the quarter fell 82% YoY to €800,000, leaving a margin of 2%.  

Operator turnover for the quarter rose 3.5% YoY to €737m, which bosses said was helped by new partner launches, namely Svenska Spel and LiveScore Bet.

Turnover from the Americas increased 7% YoY and accounted for 57% of the overall figure, aided by Kambi’s presence in the regulated Brazilian market.

Europe accounted for 40% of operator turnover, with the Rest of the World adding a further 3%.

Operator trading margin increased from 9% to 10.2%, which was helped by favourable results across European football and an increased uptake of higher margin products such as bet builders.

But, “unusually player-friendly results” during basketball’s March Madness had the opposite effect, tempering margin slightly.

Staff costs for Q1 fell 7% YoY to €15m as a result of the company phasing in redundancies and other cost-saving measures in Q4 2024.

Kambi CEO Werner Becher noted that the firm’s Q1 return was below expectations, but he insisted the supplier remained in good shape moving ahead.

He said: “In Q1, we continued to build the foundations for long-term success, furthering our mission to develop a stronger, more resilient Kambi.

“While revenue grew 7% when excluding the impact of transition fees, our financial performance was below what should be expected of a company of Kambi’s standing and far from the future level I aspire to.”

“I am confident in our strategic direction, the strength of our premium product suite and the dedication of the entire Kambi team.

“As we execute on our long-term strategy, I am excited by the potential to not only strengthen our market-leading position but also build a more sustainable and diversified business that delivers increased value to our shareholders.”

During Q1, Kambi signed an agreement to become the new sportsbook partner of the Ontario Lottery and Gaming Corporation (OLG), replacing FDJ UNITED.

Becher added that the deal highlights the positive impact the supplier is making with current and former state-owned operators.

He added: “This imminent partnership highlights the exciting potential of forging relationships with state-owned, former state-owned and monopoly operators.

“Our existing partnerships with ATG, the Belgian National Lottery and Svenska Spel underline our growing reputation in this important space, with operators which we believe provide more longevity of revenue in an otherwise consolidating market.

“As a result of this growing success, combined with our unmatched levels of corporate probity, Kambi is fast becoming the trusted sportsbook partner of choice to operators within this customer segment, matching the position we hold across the wider market.”

The post Kambi shares down as CEO admits Q1 performance was below expectations first appeared on EGR Intel.

 Supplier records revenue of €41.5m in the reporting period, down 4%, while Werner Becher said it was “below what should be expected of a company of Kambi’s standing”
The post Kambi shares down as CEO admits Q1 performance was below expectations first appeared on EGR Intel.