Kambi (KAMBI) Q1, 24 conf call of 4/24/24

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FANTINI’S GAMING REPORT©

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April 24, 2024

Conference Call Summary

Kambi – KAMBI – Q1, 2024

Ashley Diem – Publisher and Executive Editor 

 

NOTE: Kambi is a Stockholm-listed B2B sports betting platform and sportsbook services provider.

FIRST QUARTER HIGHLIGHTS:

Diluted earnings per share: 10.7 Euro cents vs. 10.7 Euro cents

Revenue: €43.2 million vs. €44 million

EBIT: €4.4 million vs. €4.5 million

 

ORGANIC GROWTH WITH PRODUCT EXPANSION

            Kambi started the year with a solid financial performance, an extension of its retail sportsbook agreement with PENN Entertainment and launches in Nigeria and the Netherlands, CEO Kristian Nylén said.

            KAMBI has also partnered with Inspired Entertainment to do Virtual Sports, he said.

  •             LiveScore. KAMBI has been on time with all launches of LiveScore under its long-term partnership with the brand this year, and the United Kingdom will come online before the Euro 2024 soccer tournament starting in mid-June.

  

          Feedback from LiveScore has been very good so far, Nylén said.

  •             Products. KAMBI has previously talked about improvements to its platform and adding modular services, and the company is now in a position to do that, Nylén said.

            KAMBI has integrated all the Abios eSports odds and now has a better setup to easily provide its full suite from itself, Abios and the AI-subsidiary Tzeract.

            There are two prospects interested in the company’s odds feeds, Nylén said.

            KAMBI also signed its first commercial agreement for Tzeract’s Bet Builder product with Kwiff, which should be live ahead of Euro 2024 too.

            eSoccer has become an important source of income for KAMBI and in eSports the company is up to 8,000 events a month now which is quite a large volume, he said, adding eBasketball should roll out later this year.

  •             Markets. KAMBI continually evaluates markets where it is acceptable for them to operate, Nylén said in response to a question about entering unregulated markets but didn’t provide additional detail.

            On Brazil, Nylén said there is a lot of opportunity and some of KAMBI’s existing partners are already active there and looking to upgrade with the country’s regulations.

  • Contracts. In terms of the possibility of its clients being acquired by operators that have in-house sports betting platforms, Nylén said all KAMBI can do is ensure it has contracts that gives it some income protection in the event of M&A.

            While it has to maintain premium products for Tier 1 operators and costs associated with that even with the risk of M&A, Nylén said KAMBI has also focused on taking smaller customers over the last three to five years to lessen its dependence on those Tier 1 operators as clients.

  •             Buybacks. KAMBI has strong security with its balance sheet, and after the annual general meeting there is always the possibility that the board could raise the number of approved share repurchases moving forward, CFO David Kenyon said.

            A healthy cash position for KAMBI is around €40 million, he said.

  •             Growth. Organic growth is the main road of expansion for KAMBI to hit its 2027 targets, though M&A isn’t impossible, Nylén said.

            Nothing is ruled out and a player account management product is something KAMBI has talked about adding if it can find a suitable partner, he added.

             Call replay at https://ir.financialhearings.com/kambi-group-q1-report-2024.

 

            - Financial reports and presentation: https://www.kambi.com/investors/financial-reports-and-presentations/.

 

 

 

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