Kambi ‘far from’ where it should be amid Q1 declines, says CEO

Kambi CEO Werner Becher raised concerns over the supplier’s Q1, saying its financial performance, which included a decline in revenue and net profit, is “far from the future level [he] aspires to”.

Revenue during the three months through to 31 March hit €41.5 million (£35.3 million/$47.2 million). This falls 4% short of the previous year, Q1 data released by Kambi shows.

Kambi said, excluding €4.4 million of transition fees received in Q1 2024 from former clients Penn and Napoleon, Q1 2025 revenues increased by 7% year-on-year.

Kambi seeking to diversify partner network

On this, Becher reiterated Kambi’s aim to diversify revenue streams and reduce its reliance on a small number of large partners.

“The percentage of revenue generated by Kambi’s three largest partners has been declining since the inception of the company, recently falling from 45% in 2023 to 39% in 2024, as our total number of partners continues to rise,” Becher said.

“This is largely the result of continued geographic and product diversification driving revenue, which is more than offsetting known partner losses.

In Q1, this partner concentration fell further, but Bercher said he expected this to decline across the year as Kambi “launches additional partners and commercial momentum builds”.

However, while Becher said Kambi continued to “build foundations for long-term success” in Q1, he was not satisfied with the performance. He says the group had fallen short of expectations.

“While revenue grew 7%, excluding the impact of transitions fees, our financial performance was below what should be expected of a company of Kambi’s standing,” Becher said. “It is far from the future level I aspire to.”

Kambi grows in Americas after Brazil Q1 opening

Going into further detail on Q1, Kambi noted higher turnover and stronger trading margin had a positive contribution on revenue.

However, new deposit limits in the Netherlands, higher gaming-related taxes in multiple jurisdictions and new commercial terms of some renewed contracts had a negative impact.

Operator turnover increased 4%, largely driven by new partner launches including LiveScore and Svenska Spel. However, Kindred’s exit of various markets, coupled with higher Dutch taxes, stunted progress.

Kambi’s trading margin improved from 9% to 10.2%, helped by favourable results across European football leagues. However, unusually player-friendly results in the NCAA men’s basketball March Madness tournament had the opposite effect.

Geographically, Kambi flagged growth in the Americas, with turnover up 7%, accounting for 57% of all turnover. This, it said, was helped by the opening of the regulated market in Brazil in January. In contrast, Europe turnover contribution dipped to 40%, with rest of world at 3%.

Kambi net profit slips 58% in Q1

Gross profit after increased data supplier costs declined 5% to €36.3 million. Kambi was able to make savings on staffing, but other operating expenses were higher than the previous year. It also reported a €1.2 million currency exchange loss.

Coupled with the revenue fall, operating profit dropped 82% to €809,000. Kambi paid €238,000 in income tax, resulting in a net profit of €798,000, a decline of 77%. However, Kambi also reported a €739,000 gain on employee defined benefits.

Adjusted EBITDA (acq) was also 60% lower than 2024, at €2.3 million. As of Q1, Kambi has changed the name of this alternative performance measurement, to make it more apparent which items affecting comparability are excluded. This was previously referred to as adjusted EBITDA only.

“Our commitment to delivering best-in-class sports betting solutions remains unwavering and we are focused on cultivating long-term, mutually beneficial partnerships,” Becher said.

“In summary, I am confident in our strategic direction, the strength of our premium product suite and the dedication of the entire Kambi team. As we execute on our long-term strategy, I am excited by the potential to not only strengthen our market-leading position but also build a more sustainable and diversified business that delivers increased value to our shareholders.”

 Kambi reported year-on-year declines in both revenue and net profit during Q1, although revenue was heavily impacted by outgoing client fees.