Kambi CEO Cautions on "Major Challenges" Amid Stagnation in 2024 Performance

**Kambi’s Revenue and Performance Overview for 2024**

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

Though the growth was slight, Kambi’s CEO Becher described the year as “transitional” and “transformative” for the supplier. Becher took over as CEO in July, succeeding the long-serving Kristian Nylén, whose departure was announced in January.

Following Nylén’s exit announcement, he expressed dissatisfaction with Kambi’s performance in 2023. Despite an increase in revenue, net profit and EBITDA had declined year-on-year.

In contrast, Becher expressed a more positive outlook about the group’s achievements over the past year, highlighting the supplier’s efforts to diversify its revenue streams.

However, Becher issued a caution for 2025 as some partners, notably Kindred and LeoVegas, plan to move away from Kambi’s turnkey sportsbook. He also noted 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,” said 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**

For 2024, Kambi’s marginal revenue growth was driven by several factors. These included 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 expanded its turnkey sportsbook product by adding several partners, including KTO Group, Choctaw Nation, VIP Play Inc, and Wind Creek Hospitality, during the year. Additionally, key partners like Rush Street Interactive and Sun International, along with Penn Entertainment for its retail sportsbook network, renewed their contracts.

However, challenges were present, such as the impact of Penn’s online migration initiated in 2023. Kambi also contended with new deposit limits in the Netherlands, new gaming taxes in Sweden, and the exit of partner Kindred Group from various markets.

**Bottom-line Improvement in 2024**

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

Total costs increased by only 2% year-on-year. Nevertheless, restructuring costs contributed to higher outgoings, resulting in a 5% decrease in pre-tax profit to €19 million.

Conversely, income tax payments were lower in 2024, improving the bottom line. Net profit for the year amounted to €15.4 million, marking a 3.4% increase over the previous year.

Kambi concluded the year with a cash flow of €25.9 million, a 73% increase from 2023.

**Mixed Bag for Kambi in Q4**

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

However, total expenses rose by 3.8% to €38.5 million. After accounting for other costs, including restructuring expenses, pre-tax profit fell by 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% decrease. Moreover, EBITDA fell by 5.9% to €16 million.

**What Can We Expect in 2025?**

Alongside its 2024 performance, Kambi provided insights into potential developments for the coming year.

The headline guidance projects EBITA in the range of €20 million to €25 million, close to the €25.3 million posted in 2024. While costs may rise in certain areas, these will be offset to partners, so the impact on EBITA should be minimal.

Kambi anticipates revenue growth from organic sources within the operator network, with notable contributions from LiveScore and Svenska Spel for the full year.

However, revenue may face challenges due to 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 – alongside our various partner signings, provide a solid platform for the future,” Becher stated.

“The foundations we are building…”