Kambi Group (KAMBI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose to €43.0m, up 2% year-on-year, with operator turnover up 14% and trading margin at 10.4%.

• Signed major partnerships, including KTO in Brazil, Hard Rock Digital in the US, and extended key deals like Rush Street Interactive.

• Launched new modular products, notably Odds Feed+, and expanded esports offerings with Abios.

• Announced a €12 million share buyback program running until May 2025, larger than previous buybacks.

• CEO transition to Werner Becher, with a focus on modularisation, cost efficiency, and navigating near-term headwinds.

Financial highlights

• Q3 revenue was €43.0m, up from €42.1m in Q3 2023, with last year's figure including €2.6m in non-recurring license revenues and €2.3m in PENN transition fees.

• Q3 EBITDA was €4.9m; EBITA (acq) was €4.9m (down from €6.0m YoY); EBIT was €3.6m; profit after tax was €2.5m.

• Total expenses were €39.4m (or €38.5m excluding FX), at the low end of guidance.

• Cash and cash equivalents at quarter-end were €60.5m, with a net increase of €8.1m during the quarter.

Outlook and guidance

• Full-year 2024 revenue guidance narrowed to €172.5–€175.5m, with costs expected at the low end of prior guidance.

• Q4 revenue expected to be slightly below Q3 due to the end of PENN transition fees and normalization of trading margins.

• Brazil's regulated sports betting market expected to launch in January 2025, with partners prepared to enter.

• Guidance for 2025 will include a cost range and likely a revenue range.