{"id":844076,"date":"2025-04-27T21:12:06","date_gmt":"2025-04-28T02:12:06","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/27\/kambi-ceo-warns-of-significant-challenges-following-flat-2024\/"},"modified":"2025-04-27T21:12:06","modified_gmt":"2025-04-28T02:12:06","slug":"kambi-ceo-warns-of-significant-challenges-following-flat-2024","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/27\/kambi-ceo-warns-of-significant-challenges-following-flat-2024\/","title":{"rendered":"Kambi CEO warns of \u201csignificant challenges\u201d following flat 2024"},"content":{"rendered":"

Kambi Group 2024 revenue was flat as chief executive Werner Becher has warned of \u201csignificant challenges\u201d over the coming year as certain partners migrate away from its turnkey sportsbook. <\/strong><\/p>\n

\n

Kambi revenue for the 12 months to 31 December 2024 hit \u20ac176.4 million (\u00a3146.4 million\/$185.2 million), according to its earnings released today (26 February)<\/a>. This was largely flat, at 1.8% higher than the previous year<\/a>.<\/p>\n

Although only marginal growth, Becher described the period as a \u201ctransitional\u201d and \u201ctransformative\u201d year for the supplier. Incidentally, the CEO began his tenure in July<\/a>, taking over from the long-serving Kristian Nyl\u00e9n, whose\u00a0exit was confirmed in January<\/a>.<\/p>\n

Shortly after Nyl\u00e9n announced his exit, he aired his dissatisfaction at Kambi\u2019s performance in 2023. Despite reporting an increase in revenue, net profit and EBITDA were lower year-on-year.<\/p>\n

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\u2019s efforts to diversify its revenue streams in recent months.<\/p>\n

However, Becher did issue a warning for 2025 as certain partners, particularly Kindred and LeoVegas, migrate away from Kambi\u2019s turnkey sportsbook. He also flagged the recently approved temporary VAT in Colombia<\/a> as a potential issue for the group.<\/p>\n

\u201cThis year won\u2019t be without significant challenges, with 2025 presenting a particular set of headwinds, which we expect to ease going forward,\u201d Becher said. <\/p>\n

\u201cAs previously announced, we are actively taking action to manage costs and are continuing to diversify our revenue streams through product expansion.\u201d<\/p>\n

Marginal growth for Kambi<\/h2>\n

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\u2019s Odds Feed+ services, as well as Kwiff taking on its Bet Builder services.<\/p>\n

Kambi also added several partners to its turnkey sportsbook product including KTO Group, Choctaw Nation, VIP Play Inc and Week 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.<\/p>\n

However, there were some challenges, such as the impact of Penn\u2019s online migration<\/a> which was initiated in 2023. Kambi also faced new deposit limits in the Netherlands and new gaming taxes in Sweden, while partner Kindred Group also exited various markets.<\/p>\n

Bottom-line improvement in 2024<\/h2>\n

EBITDA increased by 5.5% to \u20ac59.7 million while operating profit (EBIT) was flat on the previous year at \u20ac20.1 million at a margin of 11.4%.<\/p>\n

Spending-wise, total costs were only 2% higher year-on-year. However, restructuring costs added more to Kambi\u2019s outgoings, meaning pre-tax profit slipped 5% to \u20ac19 million.<\/p>\n

On the flip side, income tax payments were lower in 2024, which led to a better bottom line. Net profit for the year totalled \u20ac15.4 million, a 3.4% improvement on the previous year.<\/p>\n

The supplier closed the year with a cash flow of \u20ac25.9 million, representing a 73% uptick on 2023. <\/p>\n

Mixed bag for Kambi in Q4<\/h2>\n

As for the final quarter of 2024, revenue climbed 0.5% year-on-year to \u20ac44.5 million. During the three-month period, Kambi took on a number of new clients, including Wind Creek Hospitality and VIP Play Inc.<\/p>\n

However, total expenses were up 3.8% to \u20ac38.5 million, while after also accounting for other costs, including restructuring expenses, pre-tax profit dropped 40% to \u20ac4.5 million.<\/p>\n

Kambi paid \u20ac519,000 in income tax, leaving a net profit of \u20ac5.1 million in Q4, down 7.3%. In addition, EBITDA fell 5.9% to \u20ac16 million.<\/p>\n

What can we expect in 2025?<\/h2>\n

In addition to its 2024 performance, Kambi offered insight into what could be in store during the coming year.<\/p>\n

The headline guidance is EBITA in the range of \u20ac20 million to \u20ac25 million, which would be near to the \u20ac25.3 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.<\/p>\n

Kambi expects revenue tailwinds from organic growth within the operator network, notably full-year revenue contributions from LiveScore and Svenska Spel.<\/p>\n

However, revenue will also likely be hit by certain headwinds such as the end of transition fees received during 2024 and the proposed temporary VAT on deposits in Colombia.<\/p>\n

\u201cLooking further ahead, the strategic initiatives we have undertaken \u2013 advancing AI innovation, expanding our product portfolio and initiating a cost efficiency programme \u2013 along with our various partner signings, provide a solid platform for the future,\u201d Becher said.<\/p>\n

\u201cThe foundations we are building today will enable us to emerge stronger, more agile and well-positioned for long-term growth.\u201d<\/p>\n<\/p><\/div>\n

Robert Fletcher
Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Kambi Group 2024 revenue was flat as chief executive Werner Becher has warned of \u201csignificant challenges\u201d over the coming year as certain partners migrate away from its turnkey sportsbook. Kambi revenue for the 12 months to 31 December 2024 hit \u20ac176.4 million (\u00a3146.4 million\/$185.2 million), according to its earnings released today (26 February). This was<\/p>\n","protected":false},"author":1,"featured_media":844077,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[137654,359],"tags":[137653,5192],"class_list":{"0":"post-844076","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-kambi","8":"category-warns","9":"tag-kambi","10":"tag-warns"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/844076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=844076"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/844076\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/844077"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=844076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=844076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=844076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}