Kambi CEO Discusses "Significant Challenges" Amidst 2024 Growth Slowdown

# Kambi’s 2024 Financial Performance

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

Although the growth was marginal, Becher described this 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.

After Nylén announced his exit, he expressed dissatisfaction with Kambi’s performance in 2023. Despite an increase in revenue, net profit and EBITDA were lower year-on-year.

Moving into this year, Becher was more positive about the group’s achievements over the past 12 months. He highlighted the supplier’s recent efforts to diversify its revenue streams.

However, Becher cautioned about potential challenges in 2025, as certain partners, particularly Kindred and LeoVegas, plan to depart from Kambi’s turnkey sportsbook. He also mentioned the recently approved temporary VAT in Colombia as a potential challenge 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

Focusing on 2024, marginal revenue growth was aided by several factors, including 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 over 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 some 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) remained flat at €20.1 million, with a margin of 11.4%.

Total costs rose by only 2% year-on-year. However, restructuring costs increased Kambi’s expenses, leading to a 5% decline in pre-tax profit to €19 million.

On the positive side, income tax payments were lower in 2024, which improved the bottom line. Net profit for the year totaled €15.4 million, representing a 3.4% increase over the previous year.

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

## Mixed Results for Kambi in Q4

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

However, total expenses rose by 3.8% to €38.5 million, and after considering 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, a 7.3% decline. Additionally, EBITDA fell by 5.9% to €16 million.

## Expectations for 2025

Looking ahead, Kambi provided insights into what might be expected in the upcoming year.

The main prediction is EBITA in the range of €20 million to €25 million, similar to the €25.3 million posted in 2024. Costs are expected to rise in some areas, but these will be passed on to partners, so Kambi expects this not to impact EBITA.

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

However, revenue will likely face some challenges, 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 programme—along with our various partner signings, provide a solid platform for the future,” Becher said.