Kambi Reports Stable Q1 2024 Results Amid Strategic Partnerships and Operational Advancements

Kambi, a leading supplier in the gaming industry, has reported its financial results for the first quarter of 2024, showcasing stable performance amidst a challenging market environment. The company posted revenue of €43.2m ($46.1m) for Q1 2024, representing a marginal decrease of 1.8% compared to the same period in the previous year.

Operating profit (EBIT) for the quarter stood at €4.4m, resulting in a margin of 10.2%, a slight decrease from the 10.3% margin recorded in Q1 2023. EBITA remained stable at €5.8m, with a margin of 13.3%, mirroring the figures from the previous year.

Cash flow for the first quarter of 2024, excluding working capital and M&A, demonstrated a significant increase of 68.75% compared to Q1 2023, reaching €5.4m. Earnings per share remained unchanged from the previous year at €0.107.

Kambi's Board has proposed no dividend payout for the year, with the company's Annual General Meeting (AGM) scheduled for May 21, 2024.

Despite the slight decline in revenue, Kambi has made significant strides in strategic partnerships and operational advancements during the quarter. Tzeract, Kambi's AI trading division, has entered into a commercial partnership with European operator Kwiff to provide its innovative Bet Builder product.

Additionally, Kambi has extended its retail sportsbook partnership with Penn Entertainment until December 2025, replacing the previous agreement that was set to conclude in July 2024. This extension demonstrates the strength and value of Kambi's offerings in the retail sportsbook market.

The company also successfully launched LiveScore Group's Kambi-powered sportsbook in Nigeria and the Netherlands, with plans for a broader rollout ahead of the highly anticipated Euro 2024 tournament. Kambi continues to focus on the development of its open platform and trading gateway, integrating Inspired Entertainment's virtual sports offering and preparing for external odds feeds provision.

In terms of financial strategy, Kambi completed its third share buyback program and announced a further share buyback program running from March 18 to May 20, with a total allocation of €4.0m.

Kristian Nylén, Kambi's outgoing CEO and Co-Founder, commented on the results, stating, "For the first quarter of the year, we posted revenue of €43.2m, which was in line with our expectations, while expenses were at the lower end of our guidance at €39.0 million."

The Q1 2024 results follow Kambi's announcement of a decline in revenue for Q4 2023, along with full-year growth, a share buyback program, and revenue guidance for 2024, which were reported in February 2024.

As Kambi navigates the evolving gaming landscape, its focus on strategic partnerships, operational advancements, and financial discipline positions the company for long-term success. With a stable financial foundation and a commitment to innovation, Kambi remains well-equipped to capitalize on future opportunities in the industry.