Kambi Reports Impressive Q2 2024 Financial Growth and Strategic Expansions

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Kambi has reported a robust financial performance for the second quarter of 2024, demonstrating significant growth and strategic advancements. The company’s revenue for Q2 2024 reached €45.7 million ($49.4 million), marking a 6.5% year-on-year increase. For the first half of 2024, Kambi’s revenue was €88.9 million, reflecting a 2.3% rise compared to the first half of 2023.

Strong Financial Performance in Q2 2024

Kambi’s operating profit (EBIT) for Q2 2024 was €6.2 million, showing a remarkable 67.6% increase. The operating margin improved from 8.6% to 13.5%, underscoring the company’s operational efficiency. For the first half of 2024, EBIT stood at €10.6 million, up 29.3%, with the margin rising from 9.4% to 11.9%.

EBITA and Cash Flow Highlights

The company reported EBITA (acq) for Q2 2024 at €7.5 million, a significant 50% increase. For the first half, EBITA was €13.3 million, up 23.1%. Kambi’s cash flow, excluding working capital and mergers and acquisitions, was €8.1 million for Q2 2024. For the first half, cash flow surged to €13.5 million, a 297% increase.

Earnings Per Share and Operator Turnover

Earnings per share for Q2 2024 were €0.155, reflecting an 86.7% increase compared to Q2 2023. For the first half of 2024, earnings per share were €0.260, up 36.8% from the same period in the previous year. Outgoing CEO Kristian Nylén noted a 3% year-on-year increase in operator turnover, which was 20% when excluding the impact of the Penn online migration. He attributed this to a busy sporting calendar and growth from new and existing partners, with higher-than-average margins from the June games in the Euros tournament.

Strategic Partnerships and Market Expansions

In Q2 2024, Kambi entered an exclusive nationwide partnership with the Choctaw Nation of Oklahoma, aiming to expand its presence in the US market, particularly through Choctaw Casinos & Resorts. Additionally, Kambi successfully launched sportsbook services for LiveScore in the UK and Svenska Spel in Sweden ahead of the UEFA European Championship (Euros).

Corporate Changes and Future Outlook

Kambi announced Werner Becher as the successor to Kristian Nylén as CEO, effective 25 July 2024. Becher brings valuable experience from his previous role at Sportradar. Additionally, Kambi’s Board decided to withdraw its 2027 financial targets due to slower-than-expected progress towards regulation in key markets. The company completed its fourth share buyback program and announced a new long-term capital allocation policy aimed at returning capital to shareholders.

Q1 2024 Performance and Achievements

Kambi’s Q1 2024 results showed revenue of €43.2 million, a 1.8% decrease from the previous year, with an operating profit of €4.4 million, a 2.2% decrease, and stable EBITA at €5.8 million. The supplier reported a 68.75% increase in cash flow for the first quarter, along with the extension of its retail sportsbook partnership with Penn Entertainment and successful launches in Nigeria and the Netherlands.

Conclusion: The Financial Performance

Kambi’s impressive financial performance in Q2 2024, coupled with strategic partnerships and market expansions, underscores the company’s robust growth trajectory. The appointment of Werner Becher as the new CEO marks a significant leadership transition, poised to steer Kambi towards continued success. Despite challenges in regulatory progress, Kambi’s focus on operational efficiency, strategic collaborations, and innovative market approaches positions it strongly for future growth.

FAQs About Kambi’s Q2 2024 Financial Performance and Strategic Expansions

1. What was Kambi’s revenue for Q2 2024?

Kambi’s revenue for Q2 2024 was €45.7 million ($49.4 million), reflecting a 6.5% year-on-year increase.

2. How did Kambi perform financially in the first half of 2024?

For the first half of 2024, Kambi’s revenue was €88.9 million, a 2.3% increase compared to the first half of 2023. The operating profit (EBIT) was €10.6 million, up 29.3%, with a margin of 11.9%.

3. What was Kambi’s EBIT for Q2 2024?

Kambi’s EBIT for Q2 2024 was €6.2 million, showing a 67.6% rise from the previous year.

4. How did Kambi’s EBITA and cash flow perform in Q2 2024?

EBITA (acq) for Q2 2024 was €7.5 million, up 50%. The cash flow, excluding working capital and mergers and acquisitions, was €8.1 million for Q2 2024.

5. What were Kambi’s earnings per share for Q2 2024?

Earnings per share for Q2 2024 were €0.155, representing an 86.7% increase compared to Q2 2023.

6. What strategic partnerships did Kambi enter in Q2 2024?

Kambi entered an exclusive nationwide partnership with the Choctaw Nation of Oklahoma and launched sportsbook services for LiveScore in the UK and Svenska Spel in Sweden.

7. Who is the new CEO of Kambi as of July 2024?

Werner Becher was announced as the successor to Kristian Nylén as CEO, effective 25 July 2024.

8. What changes did Kambi’s Board make regarding financial targets?

Kambi’s Board decided to withdraw its 2027 financial targets due to slower-than-expected regulatory progress in key markets. They also announced a new long-term capital allocation policy aimed at returning capital to shareholders.

9. How did Kambi perform in Q1 2024?

In Q1 2024, Kambi reported revenue of €43.2 million, a 1.8% decrease from the previous year. The operating profit was €4.4 million, a 2.2% decrease, with stable EBITA at €5.8 million. Cash flow for Q1 2024 increased by 68.75%.