Malta, 13 February 2019

Kambi Group plc Full Year and Q4 Report 2018

Financial summary

  • Revenue amounted to €21.7 (19.0) million for the fourth quarter of 2018, and €76.2 (62.1) million for the period January to December 2018
     
  • Operating profit (EBIT) for the fourth quarter of 2018 was €4.2 (5.0) million,

            with a margin of 19.2% (26.3%), and €12.7 (7.7) million for the period January to December 2018, with a margin of 16.7% (12.4%)

  • Profit after Tax amounted to €3.3 (3.9) million for the fourth quarter of 2018, and €9.8 (5.9) million for the period January to December 2018
     
  • Earnings per share for the fourth quarter of 2018 were €0.110 (0.131), and €0.326 (0.198) for the period January to December 2018
     
  • Cash flow from operating and investing activities (excluding working capital) amounted to €2.8 (3.8) million for the fourth quarter of 2018, and €8.6 (4.7) million for the period January to December 2018
     
  • The AGM will be held on 16 May 2019 at Kambi's Stockholm office. The Board has decided to propose that no dividend is paid out (2017: no dividend)

       

Key highlights

  • Strong financial performance including 42% operator turnover growth, with Kambi revenue growing 14%
     
  • Operator trading margin of 8.5% was above expectation, although below the 9.7% margin in Q4 2017
     
  • Launched on-property Sportsbooks with DraftKings in New Jersey and Rush Street Interactive's Rivers Casino and SugarHouse Casino in Pennsylvania
     
  • Contract signed with Greenwood Gaming & Entertainment, owner of the largest gaming complex in Pennsylvania, Parx Casino
     
  • Received full licence in Mississippi, an interim licence in Pennsylvania and supported operators in securing licences in Sweden

"It gives me great pleasure to present another strong quarter for Kambi, bringing to a close what was the most successful year in our history. Thanks to the hard work of all Kambi staff, Q4 2018 produced another period of financial growth, new customer signings and regulated market entries.

Kambi's operator turnover increased by 42% year-on-year in Q4 2018 while revenue was up 14%. Meanwhile, operator trading margin came in at 8.5%, once again above our long-term expected average. Bearing in mind the comparative period in 2017 delivered Kambi's highest ever operator trading margin, our Q4 2018 performance is particularly pleasing and highlights the positive momentum we have built within the business.

While there were many positive aspects to our Q4 2018 performance, the highlight was Kambi's retail delivery. During the quarter, Kambi successfully launched on-property sportsbooks with DraftKings at the Resorts Casino in New Jersey and with Rush Street Interactive in two casinos in Pennsylvania. Furthermore, much of the planning and preparation work for the launches of ATG in 2,000 retail stores in Sweden and two properties owned by new customer signing Greenwood Gaming & Entertainment in Pennsylvania, took place in Q4, enabling their successful launches in January 2019.

With the US market high on Kambi's priority list, our ability to demonstrate our high-quality on-property Sportsbook and prompt time-to-market leaves us well-placed moving forward, particularly considering the emphasis US operators and state regulators place on the retail channel. When also factoring in the early success we have had online in New Jersey, I'm not surprised Kambi is now seen as the leading multi-channel sports betting supplier in this burgeoning market.

Reflecting on the year as a whole, 2018 will be remembered as one of achievement and one in which Kambi reached new heights. And although much hard work remains in front of us, the strong foundations we have put in place leave me confident Kambi can remain on this upward trajectory throughout 2019.

The year has already begun positively with the successful launch of new customers in multiple markets and the signing of an agreement to relaunch the popular German sports betting brand mybet later this year. The business remains in great shape for the challenges and opportunities that lie ahead." 

You are invited to participate in a report presentation at 10:45 CET with the CEO Kristian Nylén and CFO David Kenyon. The presentation will be held in English via a telephone conference and can also be accessed via an audiocast using the link below.

Questions can be asked on the telephone conference or sent via the audiocast link. Please see details in the link below:

https://financialhearings.com/event/11650 

Numbers for participation in the telephone conference:

SE: +46851999383 (Direct) UK +443333009265 (Direct) US: +18335268380 (Direct) ES: +34 935472900 (PIN: 59925447#)

Link to the audiocast: https://tv.streamfabriken.com/kambi-group-q4-2018

About Kambi

Kambi is a provider of premium sports betting services to licensed B2C gaming operators.  Kambi Group plc is listed on First North at Nasdaq Stockholm. Our services encompass a broad offering from front-end user interface through to odds compiling, customer intelligence and risk management, built on an in-house developed software platform. Kambi's 20+ customers include 888, ATG, Corredor Empresarial, DraftKings, Kindred Group, LeoVegas and Rush Street Gaming. Kambi employs approximately 700 staff across offices in Australia, Malta (headquarters), Philippines, Romania, Sweden and the United Kingdom.

Kambi utilises a best of breed security approach, with guiding principles from ISO 27001. Kambi is eCOGRA certified. Kambi Group plc is listed on First North at Nasdaq Stockholm under the symbol "KAMBI". The Company's Certified Advisor is Redeye AB.

Disclaimer: The information in this report/press release is such that Kambi Group plc is required to disclose under the EU Directive of Market Abuse Regulation and the Swedish Securities Market Act.

The information in this release was sent for publication on Wednesday, 13 February 2019 at 07:45 CET by CEO Kristian Nylén.

Kambi Group plc contacts:

Kristian Nylén, Chief Executive Officer

David Kenyon, Chief Financial Officer

Mia Nordlander, Head of Investor Relations

Tel: +44 203 617 7270

       +44 785 091 0933