Kambi Group has announced its complete financial results for the first quarter of 2025, with revenues decreasing by 4% year-over-year to 41.5 million euros (47.2 million USD).
Kambi's performance in the first quarter saw an overall decline, with adjusted EBITDA dropping from 5.8 million euros in the same period last year to 2.3 million euros, and an EBITDA margin of 5.6%. Additionally, the company's operating profit also saw a significant year-over-year decrease of 138.5%, to 0.8 million euros.
Q1 2025 Performance
In fact, the supplier's profit plummeted alongside a slight increase in operating expenses, which grew by 4% compared to the first quarter of last year, reaching 40.5 million euros. The operating profit margin remained stable at 2%, while cash flow increased from 5.4 million euros in Q1 2024 to 7.7 million euros.
Kambi's earnings per share totaled 0.027 euros this quarter, lower than the 0.107 euros from the same period last year. Moreover, Kambi's revenue was 41.5 million euros, slightly down from 44.5 million euros in Q4 2024. These latest results were announced just weeks before the company's annual shareholder meeting scheduled for May 19, 2025.
Q1 2025 Highlights
Kambi began its expansion phase in the first quarter of this year, obtaining a license from the Nevada Gaming Commission in January to provide sports betting technology in the state. Following the acquisition of BetCity by Entain, Kambi also announced the extension of its partnership with BetCity.
Additionally, besides securing a newly regulated sports betting market license in Brazil earlier this year, Kambi was selected by the Ontario Lottery and Gaming Corporation (OLG) to replace FDJ as the organization's new long-term sports betting partner.
In July last year, Kambi appointed Werner Becher as the new CEO, after which the company quickly withdrew its financial targets.
CEO Comments
Regarding the latest results, Becher stated: "In the first quarter, we continued to lay the groundwork for long-term success, further advancing our mission to build a stronger, more resilient Kambi. Although revenue grew by 7% after excluding transition costs, our financial performance remains below what should be expected of a company of Kambi's stature, and far from the future levels I anticipate."
Despite the March Madness basketball tournament results being almost unprecedentedly favorable for players, the operator's transaction profit still met expectations. March Madness is one of the largest sporting events in the USA and has always been one of Kambi's most popular betting events annually.
This year, the top-seeded players in each division advanced to the semifinals for the first time in history. These outcomes will impact sports betting companies targeting the US, resulting in Kambi's profit margin for March Madness being in the single digits. However, our growing global network has mitigated such player-favorable outcomes, leading to an operator transaction profit margin of 10.2% for the quarter.
