“I am pleased with the strategic progress we made throughout 2023, as we continue to build a strong foundation for growth over the coming years”
Kristian Nylén, Kambi CEO and Co-founder
Financial summary
*EBITA (acq) = Earnings before interest, taxation and amortisation on acquired intangible assets
Key highlights
Revenue guidance for 2024
Kambi today provides 2024 full year revenue guidance of €170 – €180 million. This full-year guidance is provided strictly on a one-off basis and Kambi does not intend to provide annual guidance for coming years.
CEO comment
“The final quarter of 2023 saw Kambi conclude a year of strong strategic progress, whilst navigating what remains a complex and challenging sports betting landscape. Revenue of €44.3 million in Q4 reflected a 2% year-on-year decline excluding the one-off termination fee from Penn recorded in Q4 2022, largely due to the loss of Penn’s online revenue. On a full year basis revenue increased 13% to €173.3 million when excluding the termination fee.
As I look back on the year, I have two overriding takeaways, the first being I’m not satisfied with our financial performance. This performance was impacted by lower than anticipated revenue from Shape Games, smaller than expected revenue contributions from two of our largest partners and Bally’s more measured approach to marketing its sportsbook thus far. My second reflection is we made good progress in building the foundations that will ultimately lead to a much-improved financial performance in the future, giving me confidence we’re on the right path for the long-term.
These foundations include the numerous partner signings and renewals made last year, headlined by the partnerships with Bally’s Corporation, LiveScore Group and Svenska Spel, which we expect to deliver a meaningful revenue contribution from H2 2024. We also continue to work on our modularisation capability and believe with Abios, Shape Games and now Tzeract, the positive commercial conversations we’re having with regards our strong product portfolio will increasingly bear fruit during the year ahead. On Shape Games, we recently took the decision to integrate it further into the business to make the most of the opportunities we see in combining the strengths of the Kambi and Shape Games UX teams. Meanwhile, another important element to financial performance is tight cost control, so it is pleasing today we can communicate a limited year-on-year cost increase for 2024. These are just some of the actions we have taken to put us in a stronger position moving forward.
Having said that, it is important to note that challenges do continue to exist, including a slower roll-out of newly regulated sports betting markets. The outlook in certain markets has not been as promising as previously anticipated, particularly in California where 2028 now appears to be a more realistic timeline for regulation. In Brazil, we welcome the long-awaited regulation of the country’s sports betting market, but are also mindful that the transition to a fully licensed framework is unlikely before Q3 2024 and that new operators will face tough competition entering what is already a mature grey market with established sports betting brands.
Meanwhile, in January, I communicated to the market of my intention to step down as CEO in 2024 and a search to find my successor is now underway. I want to emphasise that our long-term strategic direction remains unchanged and I am pleased with the milestones we achieved as a business throughout 2023. While there has indeed been a slowdown in regulatory-driven opportunities, we remain very positive about the long-term trajectory of Kambi Group. Our resilience, strategic progress and commitment to product excellence have set us up well for the future and, as we move forward, we do so with great optimism for the journey ahead.”
Update from the Chair
Anders Ström, who was appointed Chair of the Board in November 2023, provides the following update on appointing a successor to Kristian Nylén:
“Following the announcement regarding our CEO in January 2024, the Board of Kambi has initiated the process of seeking a successor. The search is progressing according to plan, with the aim to finalise an appointment prior to the summer period. In the meantime, the company's progress towards its long-term strategic objectives remains uninterrupted.”
You are invited to participate in a web presentation at 10.45 CET with Kambi Group plc’s CEO Kristian Nylén 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.
Please see details in the link below:
https://financialhearings.com/event/46435
Link to the webcast:
https://ir.financialhearings.com/kambi-group-q4-report-2023
Dial-in number to the teleconference will be received by registering on the link below. After the registration you will be provided phone numbers and a conference ID to access the conference: https://conference.financialhearings.com/teleconference/?id=50046435
Link to report page: https://www.kambi.com/investors/financial-reports-and-presentations/
