Kambi’s Revenue in Q1 Increased by Swedish and US Growth

World-famous provider of sports betting services, Kambi Group PLC, revealed that after becoming part of the newly-regulated Swedish market and the company’s ongoing expansion in the US…

…their year-on-year revenue increased by 28% during the first three months of 2019.

The total revenue for the first three months of 2019 went up to €21.0 million, which is a nice boost from last year’s revenue of €16.4 million.

Kambi’s Revenue Details

Revenue during the first three months of 2019 consists of the fees coming from the sports betting services Kambi is giving to the operators.

Thanks to the introduction of the new online gambling market in Sweden and the involvement with the US states that have regulated sports betting…

…Kambi managed to expand its work and customer base.

As a result, the company had a nice increase in its yearly revenue.

Currently, it powers five out of eight current sports betting offerings in Pennsylvania, with Greenwood Gaming and Entertainment’s Valley Forge Turf Club launching during Q1.

Sportsbooks were also rolled out for the mybet and Wunderino brands during the first three months of 2019.

Kambi also powers a sportsbook for AB Trav och Galopp (ATG). That company is one of the leaders in a newly regulated online gambling market Sweden because it had a turnover of SEK1.07 billion.

More Details on the Numbers

Kambi officials revealed that 71% of total revenue during Q1 came from locally regulated markets…

…which is a 50% increase comparing to the same period last year.

Because of the Swedish gambling taxes and new business in the US, Kambi had to pay more in taxes than during 2018. From €300,000 the company came up to €500,000.

Company officials noted that they expect an increase of total operating expenses in the second quarter of 2019 by around 4-6% comparing to the Q1.

Because of the higher revenue, it was able to post an operating profit of €2.6 million, up from €2.0 million during 2018.

Its profit before tax was also up from €1.8 million to €2.5 million, while profit after tax increased from €1.5 million in Q1 2018 to €2.0 million in the most recent quarter.

A Word from CEO

“Building on our tremendous achievements last year, we continue to reach new heights with Q1 2019 one of our best quarters yet, featuring new customer gs, numerous customer roll-outs, and continued financial growth,” CEO Kristian Nylén said.

The CEO further mentioned the importance of the company’s new partnership with Mohegan Sun casino in the state of Connecticut…

…as well as the relaunch of mybet in .

According to him, those were Kambi’s best moments in the first quarter of the year, while the company’s expansion throughout the US market remains one of the main priorities.

“As expected, the regulation of sports betting state-by-state has been a slow process but one which may pick up in the coming months as states push for legislation ahead of the start of the next NFL season in September,” he added.

“Of more importance is that states regulate the right way. As we have seen in New Jersey, where mobile betting represents 80% of the market, online regulation is key if states are to channel players away from the illegal market into a safe and regulated environment,” Nylén concluded.

Source:

“Kambi boosted by Swedish and US growth in Q1”, igamingbusiness.com, April 24, 2019.