Kambi CEO Alerts to "Major Challenges" While Upholding 2024 Forecast

**Kambi’s Revenue 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 figure represents a slight increase of 1.8% compared to the previous year.

Though the growth was only marginal, Becher described the period as a “transitional” and “transformative” year for the supplier. Incidentally, the CEO began his tenure in July, taking over from the long-serving Kristian Nylén, whose exit was confirmed in January.

Shortly after Nylén announced his exit, he expressed dissatisfaction with Kambi’s performance in 2023. Despite reporting revenue growth, both net profit and EBITDA were lower year-on-year.

Fast-forward to this year, and Becher seemed more positive about the group’s achievements over the past 12 months, referencing efforts to diversify revenue streams.

However, Becher issued a caution for 2025 as certain partners, particularly Kindred and LeoVegas, transition away from Kambi’s turnkey sportsbook. He also highlighted 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**

Focusing on 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 Wind 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 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 the 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%.

Spending-wise, total costs were only 2% higher year-on-year. However, restructuring costs added more to Kambi’s outgoings, leading to a 5% decrease in pre-tax profit to €19 million.

Conversely, lower income tax payments in 2024 resulted in a better bottom line, with net profit totaling €15.4 million, a 3.4% improvement on 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 climbed 0.5% year-on-year to €44.5 million. During this three-month period, Kambi acquired new clients, including Wind Creek Hospitality and VIP Play Inc.

However, total expenses were up 3.8% to €38.5 million, and after accounting for additional 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.

**What Can We Expect in 2025?**

Alongside its 2024 performance, Kambi provided insights into what may happen in the coming year.

The headline guidance is EBITDA in the range of €20 million to €25 million, close to the €25.3 million posted in 2024. Costs are expected to be higher in some areas, but as these will be passed on to partners, Kambi stated this should not impact EBITDA.

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

However, revenue will likely face 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.

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