“In Q1, we continued to build the foundations for long-term success, furthering our mission to develop a stronger, more resilient Kambi” says Werner Becher, CEO of Kambi Group

Financial highlights

Unless otherwise specified, numbers are for Q1 2025 and are compared with Q1 2024

• Revenue amounted to €41.5 (43.2) million, a decrease of 4%. Excluding €4.4 million of transition fees received in Q1 2024, revenues increased by 7%.
• Adjusted EBITA (acq) was €2.3 (5.8) million at a margin of 5.6% (13.3%), and excluding the impact of foreign exchange (FX) revaluations was €3.5 (5.5) million.
• Total expenses were €40.5 (38.8) million, an increase of 4%, including an FX revaluation loss of €1.2 (gain of 0.2) million.
• Operating profit was €0.8 (4.4) million, at a margin of 2.0% (10.2%).
• Cash flow (excluding working capital and M&A) amounted to €7.7 (5.4) million.
• Earnings per share for the first quarter of 2025 were €0.027 (0.107).

Key operational highlights

• Selected as Ontario Lottery and Gaming Corporation’s long-term sports betting partner.
• Launched on day one in recently regulated Brazil and live with multiple partners including new partner Stake, as well as BetMGM, BetWarrior, KTO and Rei do Pitaco.
• Signed long-term partnership extension with BetCity.
• Secured licensing approval to provide B2B sports betting products and services in Nevada, showcasing Kambi’s ability to meet the highest standards of regulatory compliance.
• The 2025 AGM will be held on 19 May 2025.

CEO comment

“In Q1, we continued to build the foundations for long-term success, furthering our mission to develop a stronger, more resilient Kambi. While revenue grew 7% when excluding the impact of transitions fees, our financial performance was below what should be expected of a company of Kambi's standing and far from the future level I aspire to.

The operator trading margin was delivered despite an almost unprecedented run of player-friendly results in the March Madness basketball tournament. March Madness is one of the largest sporting events in the US and is consistently among the most popular betting events of the year at Kambi. This year saw the top seeds in each region advance to the Final Four, only the second time in history this has happened. These results, which will have been felt by US-facing sportsbooks, resulted in Kambi posting a low single-digit margin for March Madness. However, our growing global network reduces our exposure to such player-friendly outcomes, leading to an operator trading margin of 10.2% for the quarter.

As set out previously, one of our main aims is to diversify Kambi’s revenue streams and reduce any reliance on a small number of large partners. The percentage of revenue generated by Kambi’s three largest partners has been declining since the inception of the company, recently falling from 45% in 2023 to 39% in 2024, as our total number of partners continues to rise. This is largely the result of continued geographic and product diversification driving revenue, which is more than offsetting known partner losses. In Q1, this partner concentration fell further, and we expect this to decline across the year as we launch additional partners and commercial momentum builds.

In addition to diversification, we also want to ensure high-quality, sustainable revenue streams. As discussed in our Q4 Report, we were delighted to sign a novation agreement to become the new sportsbook partner of the state-owned Ontario Lottery and Gaming Corporation (OLG), replacing the incumbent FDJ UNITED on a contract running until 2032. Until the re-regulation of the Ontario market in 2022, OLG held the monopoly for sports betting in the province and as such has a prominent brand, a strong retail business with approximately 10,000 retail stores, as well as an online presence with great potential.

This imminent partnership highlights the exciting potential of forging relationships with state-owned, former state-owned and monopoly operators. Our existing partnerships with ATG, the Belgian National Lottery and Svenska Spel underline our growing reputation in this important space, with operators which we believe provide more longevity of revenue in an otherwise consolidating market. As a result of this growing success, combined with our unmatched levels of corporate probity, Kambi is fast becoming the trusted sportsbook partner of choice to operators within this customer segment, matching the position we hold across the wider market.

Our commitment to delivering best-in-class sports betting solutions remains unwavering, and we are focused on cultivating long-term, mutually beneficial partnerships. The demand for our core Turnkey Sportsbook, coupled with the broader diversification of our product portfolio and partner network, provides a strong platform for future growth and success.

In summary, I am confident in our strategic direction, the strength of our premium product suite and the dedication of the entire Kambi team. As we execute on our long-term strategy, I am excited by the potential to not only strengthen our market-leading position but also build a more sustainable and diversified business that delivers increased value to our shareholders.”

You are invited to participate in a web presentation at 10.00 CEST with Kambi Group plc’s CEO Werner Becher and CFO David Kenyon. The presentation will be held in English and can be accessed using the link below. After the presentation there will be the opportunity to ask questions.

Webcast:
If you wish to participate via webcast please use the link below. Via the webcast you are able to ask written questions.
https://kambi-group.events.inderes.com/q1-report-2025

Teleconference:
If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://events.inderes.com/kambi-group/q1-report-2025/dial-in