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DraftKings’ withdrawal impacts Kambi’s revenue
In the 1st quarter of 2022 Kambi Group reported lower revenue.
Profit for Q1 is 36.9 million euro, which is 14.6% less compared to last year’s 43.2 million euro.
Because of some comparativeness in last year’s finance and changes in Holland, some operators had to leave until getting a new license. In case of permanent exchange, the turnover of operators decreased by 31.0% on an annual basis. It was mainly caused by DraftKings usage of the technology provided by Kambi, in the first 3 months of 2020. So, the turnover was 25.5% more, when DraftKings was dismissed.
Kambi reported that 93% of the income resulted from managed industries, which was 84% more from 2021. America brought 55% of the revenue, Europe 43% and only 2% came from the other side of the world.
Operating costs increased by 20.4% and amounted to 29.5 million euro, which, combined with a decline in revenue, led to a decrease in operating profit by 7.3 million euro, which is 61.0% less compared to the same period last year. Financial costs were 93.2% more and amounted to 286 thousand euros. Thus, pretax earnings for Q1 was down by 61.6% to 7.1 million euros, and even though Kambi paid 1.6 million euros income tax, they still had 5.4 million euros profit, which is 64.2% less compared to the same period last year. At the meantime, EBITDA was 41.5% less.
By collaborating with NorthStar Gaming, Kambi ensured its place across Canada. This move will mainly be concentrated on Ontario, after they opened a legalized online gambling industry.
Kambi informed that the contract between Kindred Group is going to be prolonged up to 2026. They have a new MaximBet brand as well related to sportsbooks. Alone in the beginning, Kambi made 11 releases throughout the United States.
Kambi’s managing director Kristian Nylén commented:
“As our company is starting new partnerships, extending old deals and developing new products, Q1 of 2022 was really busy for us. The turnover of operators increased by 25%, adapted for DraftKings migration, which shows that the main financial indicators stay high. Despite the hard comparative finances and the effect of regulatory problems in Holland, we are seeing very much expected growth. “
Later he added that since they had forty partners only during Q1, their network has never been bigger. With interest in sportsbooks and in services they offer, Kambi’s future is promising.