Malta, 25 October 2019
Kambi Group plc Q3 Report 2019
Financial summary
- Revenue amounted to €23.0 (20.5) million for the third quarter of 2019, and €65.6 (54.5) million for the period January to September 2019
- Operating profit (EBIT) for the third quarter of 2019 was €3.4 (4.2) million, with a margin of 14.9% (20.3%), and €8.6 (8.5) million for the period January to September 2019, with a margin of 13.0% (15.7%)
- Profit after Tax amounted to €2.3 (3.3) million for the third quarter of 2019, and €5.8 (6.5) million for the period January to September 2019
- Earnings per share for the third quarter of 2019 were €0.075 (0.109), and €0.193 (0.216) for the period January to September 2019
- Cash flow from operating and investing activities (excluding working capital) amounted to €2.6 (3.3) million for the third quarter of 2019, and €4.2 (5.8) million for the period January to September 2019
Key highlights
- Solid financial performance with 12% revenue and 23% operator turnover growth despite quiet sporting calendar
- Strong operating result despite 2018 comparatives being significantly boosted by the football World Cup
- Signed Penn National Gaming, the largest regional gaming operator in North America, and JACK Entertainment, a leading gaming entertainment brand in Ohio
- Completed multiple customer launches globally across retail and online, including seven casinos in the US
- Took the first legal bet in New York and launched on the first day of regulation in Indiana and Iowa
“Multiple customer launches, new product releases and major commercial agreements all contributed to a successful period for Kambi, as we continued to display a high-level of expertise throughout the organisation.
The third quarter is traditionally a challenging one for the sports betting industry, particularly in a year with no major summer football tournament. This, along with our ongoing investments to capitalise on the huge US opportunity, was the reason for the year-on-year decrease in operating result. However, despite the tough World Cup comparatives and a relatively quiet July sporting calendar, I’m pleased to report Kambi Q3 revenue grew 12% year-on-year while operator turnover increased 23%.
I was also pleased to see momentum increase throughout the quarter, culminating in September’s operator turnover, which was up significantly year-on-year and surpassed the previous highest monthly total. This encouraging performance was due to the combination of multiple customer launches, enhancements to the Kambi sportsbook, and a busier sporting calendar, which gives me confidence for the rest of the year.
We signed two new customers during the quarter, the first being Penn National Gaming, the largest regional gaming operator in North America. With market access to as many as 19 states, Penn National was always a key US target for us. In addition to the land-based establishments Penn National operates, the company has a sports betting philosophy that complements our own, which bodes well for a long and successful relationship.
We also signed a deal with JACK Entertainment, which covers two retail establishments and an online offering in Ohio. A digital-savvy operator with a strong, local brand, JACK Entertainment is an operator we are excited about working with. Meanwhile, we also secured contract extensions with NagaWorld and DraftKings, the latter of which has already seen us enter a number of additional states as we build upon the partnership’s early success in New Jersey.
Overall, there were multiple US customer launches to mention in Q3, with online or on-property launches taking place across the states of New York, Iowa, Indiana, Pennsylvania, New Jersey and West Virginia. Among those launches was Unibet, who made its US sports betting debut in New Jersey and then launched retail in Pennsylvania. Once again, this demonstrates our market leading US proposition based on our regulatory expertise and operational capability.
In general, Kambi remains well positioned for the future and I look forward to building on our successes in Q4 and beyond, a period which has begun well with an industry award win at the recent G2E exhibition in Las Vegas.”
You are invited to participate in a report presentation at 10.45 (CET) with Kambi Group plc's CEO Kristian Nylén and CFO David Kenyon. The presentation will be held in English via a telephone conference and can also be accessed via an audiocast using the link below.
Questions can be asked on the telephone conference or sent via the audiocast link. Please see details in the link below:
https://financialhearings.com/event/12005
Numbers for participation in the telephone conference:
SE: +46850558365 UK: +443333009260 US: +18335268384
No pin required.
Link to the audiocast: https://tv.streamfabriken.com/kambi-group-q3-2019
Link to report page: https://www.kambi.com/investors/financial-reports-and-presentations/quarterly-reports
Kambi Group plc contacts:
Kristian Nylén, Chief Executive Officer
David Kenyon, Chief Financial Officer
Mia Nordlander, Head of Investor Relations
Tel: +44 203 617 7270
+44 785 091 0933
About Kambi
Kambi is a provider of premium sports betting services to licensed B2C gaming operators. Kambi Group plc is listed on First North Growth Market at Nasdaq Stockholm. Our services encompass a broad offering from front-end user interface through to odds compiling, customer intelligence and risk management, built on an in-house developed software platform. Kambi’s 20-plus customers include 888 Holdings, ATG, DraftKings, Greenwood Gaming & Entertainment, Kindred Group, LeoVegas, Mohegan Gaming & Entertainment, Penn National Gaming, Rank Group and Rush Street Interactive. Kambi employs more than 800 staff across offices in Malta (headquarters), Australia, Romania, the UK, Philippines, Sweden, Australia and the United States.
Kambi utilises a best of breed security approach and is ISO 27001 and eCOGRA certified. Kambi Group plc is listed on First North Growth Market at Nasdaq Stockholm under the symbol "KAMBI". The Company's Certified Advisor is Redeye AB.
Redeye AB
Certifiedadviser@redeye.se
Tel: +46 (0)8 121 576 90
Disclaimer: The information in this report/press release is such that Kambi Group plc is required to disclose under the EU Directive of Market Abuse Regulation.
The information in this release was sent for publication on Friday, 25 October 2019 at 07:45 CET by CEO Kristian Nylén.
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