'Well positioned' Kambi aims to build on successes
Kambi has lauded further US expansion and two key partnerships entered, as the firm sees costs associated with the growth cause a knock on affect on Q3 profit.
As revenue increased 12.2 per cent to €23m (2018: €20.5m) profit dipped to €2.3m (2018: €3.3m), as operating costs grew 20.2 per cent to €19.6m (2018: €16.3m).
Kristian Nylén, CEO of Kambi, commented: “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 per cent year-on-year while operator turnover increased 23 per cent.”
The US again became a major focus for the firm in its latest financial report, with Kambi adding to a roster of clients that boasts Greenwood Gaming and Entertainment, Mohegan Gaming and Entertainment and Rush Street Interactive.
Firstly the sports betting solutions provider aligned with gaming operator Penn National to significantly boost its market access capabilities across the country, before Jack Entertainment were brought on-board to deepen its footprint across The Buckeye State.
Multiple Q3 launches were also highly praised, as Kambi saw online or on-property debuts take place across New York, Iowa, Indiana, Pennsylvania, New Jersey and West Virginia.
Nylén added: “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.”