The Kambi Group released its third-quarter report for 2024, with revenue reaching €43.0 million, a 2.1% increase from the same quarter last year. However, this was below the €45.7 million recorded in the second quarter of 2024. CEO Werner Becher highlighted new partnerships formed with Hard Rock Digital in the USA and the KTO Group in Brazil. "We have some exciting opportunities ahead, such as the great potential of our new products and the prospect of a regulated Brazilian market just around the corner," he said.
The sports betting platform provider Kambi saw underlying growth in the third quarter with operator billing increasing 14% year over year. Although third-quarter revenue only increased by 2.1% year over year, excluding transition fees from Penn Entertainment and one-time license revenues in the third quarter of 2023, revenue grew by 16%.
The new CEO of Kambi Group, Werner Becher, spoke about the supplier's strategy to transition to a modular product line, but admitted that the company faced "short-term headwinds" to build a faster-growing business. On July 25, Becher took on his new role, bringing extensive experience and deep industry knowledge to lead the next growth phase of Kambi.
“I am honored to present this report, my first as CEO of Kambi Group. I joined Kambi because I believe it is a company with great potential. Having spent the last three months immersing myself in the business, this vision has only been strengthened. Realizing this potential will require us to navigate certain challenges, but first my thoughts on a very busy time for Kambi,” commented Becher.
The company signed a historic partnership with leading US operator Hard Rock Digital for the new Odds Feed+ product, marking a significant milestone in Kambi's modularization strategy and established an online sports betting partnership with the fast-growing Brazilian operator KTO Group ahead of the regulated Brazilian market launch in January 2025.
Kambi agreed to a multi-year extension with Rush Street Interactive, a key partner in the Americas, and also signed an Odds Feed+ partnership with Rei do Pitaco, with a long-term agreement replacing the previous turnkey agreement set to expire in 2025.
“While we have expanded the range of products we can offer to the market, we continue to see interesting opportunities for our Turnkey Sportsbook, highlighted by the partnership with KTO, one of the fastest-growing operators in Brazil. KTO will transition to Kambi ahead of the expected launch of the regulated Brazilian market early next year, having selected Kambi over its current provider. We also extended our Turnkey Sportsbook partnership with Rush Street Interactive and look forward to supporting their continued growth in the Americas in the coming years,” explained Becher.
“Meanwhile, however, we need to deal with the challenges that losing revenue from partners brings. That's why I'm particularly pleased with the recent progress we've made in modularizing our sports betting and expanding our revenue streams, aiming to scale with these products in a few years. We are also carefully considering our cost base and have identified areas where we believe we can operate even more efficiently going forward. This includes realizing additional synergies from acquisitions and further evaluating the use of artificial intelligence across the business, to reduce our underlying costs.”
“In summary, although we face some difficult short-term headwinds, I see a bright future for Kambi as we become the home of the industry's premium sports betting solutions. We have some exciting opportunities ahead, such as the great potential of our new products and the prospect of a regulated Brazilian market just around the corner. I am confident that, as we go through this transition period, we will have a more diverse, sustainable, and faster-growing business,” concluded Becher.
Source: GMB
