Kambi CEO Warns of "Major Challenges" Following a Disappointing 2024

Kambi’s revenue for the 12 months to 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), as revealed in its earnings released today. This was largely flat, showing a 1.8% increase compared to the previous year.

Although 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 an increase in revenue, net profit and EBITDA were lower year-on-year.

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

However, Becher did issue a warning for 2025 as certain partners, particularly Kindred and LeoVegas, migrate away from Kambi’s turnkey sportsbook. He also flagged 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 helped 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 taking on 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 which was 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 from the previous year at €20.1 million at 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, meaning pre-tax profit slipped 5% to €19 million.

On the flip side, income tax payments were lower in 2024, which led to a better bottom line. Net profit for the year totaled €15.4 million, a 3.4% improvement on the previous year.

The supplier closed the year with a cash flow of €25.9 million, representing a 73% increase compared to 2023.

## Mixed bag for Kambi in Q4

As for the final quarter of 2024, revenue climbed 0.5% year-on-year to €44.5 million. During the three-month period, Kambi took on a number of new clients, including Wind Creek Hospitality and VIP Play Inc.

However, total expenses were up 3.8% to €38.5 million, while after also accounting for other costs, including restructuring expenses, pre-tax profit dropped 40% to €4.5 million.

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

## What can we expect in 2025?

In addition to its 2024 performance, Kambi offered insight into what could be in store for the coming year.

The headline guidance is EBITA in the range of €20 million to €25 million, which would be close to the €25.3 million posted in 2024. Costs will likely be higher in some areas, but as these will be passed to partners, Kambi said this should not impact EBITA.

Kambi expects 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 impacted by certain headwinds, 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,” Be