Kambi CEO Anticipates "Major Challenges" Despite Steady 2024 Forecast

Kambi reported revenue of €176.4 million for the 12 months ending 31 December 2024, according to its earnings released today (26 February). This figure reflects a marginal increase, up 1.8% from the previous year.

Although this represents only slight growth, Becher described the year as “transitional” and “transformative” for the supplier. Notably, the CEO began his tenure in July, succeeding Kristian Nylén, whose exit was confirmed in January.

Shortly after Nylén announced his departure, he expressed dissatisfaction with Kambi’s performance in 2023. Despite an increase in revenue, net profit and EBITDA were down year-on-year.

Fast-forward to this year, and Becher appeared more positive about what the group achieved over the past 12 months. He highlighted the supplier’s efforts to diversify its revenue streams in recent months.

However, Becher issued a warning for 2025 regarding potential challenges, as certain partners such as Kindred and LeoVegas plan to migrate away from Kambi’s turnkey sportsbook. He also pointed out 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 stated. “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, marginal revenue growth was supported by several factors. These include 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.

Kambi also added several partners to its turnkey sportsbook product including 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, as did Penn Entertainment for its retail sportsbook network.

However, there were challenges, such as the impact of 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) was flat on the previous year at €20.1 million at a margin of 11.4%.

In terms of spending, total costs were only 2% higher year-on-year. However, restructuring costs added more to Kambi’s expenses, resulting in a 5% decline in pre-tax profit to €19 million.

On a positive note, income tax payments were lower in 2024, which contributed to a better bottom line. Net profit for the year totaled €15.4 million, a 3.4% improvement from the previous year.

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

### Mixed Bag for Kambi in Q4

In the final quarter of 2024, revenue grew 0.5% year-on-year to €44.5 million. During this period, Kambi welcomed 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 expenses, including restructuring costs, pre-tax profit fell 40% to €4.5 million.

Kambi paid €519,000 in income tax, which resulted in a net profit of €5.1 million in Q4, down 7.3%. In addition, EBITDA decreased by 5.9% to €16 million.

### What Can We Expect in 2025?

Apart from its 2024 performance, Kambi provided insights into potential developments in the upcoming year.

The main guidance is EBITA in the range of €20 million to €25 million, close to the €25.3 million posted in 2024. Costs are expected to rise in some areas, but as these will be shouldered by partners, Kambi anticipates no impact on EBITA.

Kambi predicts revenue tailwinds from organic growth within the operator network, notably full-year revenue contributions from LiveScore and Svenska Spel.

However, revenue will also likely be affected by certain 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 program — along with our various partner signings, provide a solid platform for the future,” Becher said.

“The foundations we are building today will enable us to emerge stronger, more agile, and well-positioned for long-term growth.”