Kambi CEO Discusses Key Challenges After Underwhelming 2024 Results

### Kambi’s 2024 Financial Overview

Kambi’s revenue for the 12 months ending 31 December 2024 reached €176.4 million (£146.4 million/$185.2 million), marking a slight increase of 1.8% compared to the previous year. Despite the marginal growth, Becher described the year as “transitional” and “transformative” for the company. Notably, Becher began his role as CEO in July, succeeding long-time leader Kristian Nylén, who announced his departure in January.

Nylén had expressed dissatisfaction with Kambi’s performance in 2023, despite a rise in revenue as net profit and EBITDA were lower year-on-year. Moving into 2024, Becher showed optimism about the group’s achievements over the past year, highlighting efforts to diversify revenue streams.

Becher also issued a warning for 2025, noting that key partners like Kindred and LeoVegas are moving away from Kambi’s turnkey sportsbook. He also pointed out the potential challenges posed by the recently approved temporary VAT in Colombia.

“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

In 2024, Kambi’s marginal revenue growth was supported by several factors, including the addition of Hard Rock Digital and Rei do Pitaco to Kambi’s Odds Feed+ services and Kwiff adopting its Bet Builder services.

Kambi also expanded its turnkey sportsbook product to new partners such as KTO Group, Choctaw Nation, VIP Play Inc, and Wind Creek Hospitality throughout the year. Key partners like Rush Street Interactive, Sun International, and Penn Entertainment renewed contracts, with Penn focusing on its retail sportsbook network.

Challenges included the impact of Penn’s online migration initiated in 2023. Kambi also faced new deposit limits in the Netherlands, new gaming taxes in Sweden, and the Kindred Group exiting 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 an 11.4% margin. Total costs rose by only 2% compared to the previous year, but restructuring expenses affected pre-tax profit, which fell by 5% to €19 million.

On a positive note, lower income tax payments in 2024 improved the bottom line, with net profit totaling €15.4 million, a 3.4% increase over the previous year. Kambi 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, Kambi’s revenue rose by 0.5% year-on-year to €44.5 million. New clients during this period included Wind Creek Hospitality and VIP Play Inc. However, total expenses increased 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 for Q4, down 7.3%. EBITDA also fell by 5.9% to €16 million.

### Projections for 2025

Looking forward, Kambi provided insights into expectations for 2025. EBITA is expected to range between €20 million and €25 million, close to the €25.3 million posted in 2024. While costs may rise in certain areas, these will be transferred to partners, so EBITA should remain unaffected.

Kambi anticipates revenue growth from organic growth within its operator network, notably from full-year contributions from LiveScore and Svenska Spel. However, revenue might face challenges from factors such as the end 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 programme—along with our various partner signings, provide a solid platform for the future,” Becher said.