Sports Betting Platform Provider Kambi’s Revenue to Triple by 2027
The sports betting platform provider Kambi has released its financial reports for the first three quarters of 2022, and according to them the company’s revenue has increased significantly since the same period in the year before. In an analysis of the years to come, Kambi has stated it expects a very successful 5-year period between 2023 and 2027, which would result in a 2-3 times increase of the company’s current revenue.
Kambi’s revenue for the first 9 months of 2022 was reported at £95m, and expectations are that the revenue for Q4 will be even higher. According to the Kambi’s CEO and founder, Kristian Nylén, the World Cup in Qatar at the end of 2022 was “an absolute success for the company”, and this will be reflected in the company’s financial reports for the last 3 months of the year. It was also announced that the company’s operating profit for the first three quarters of 2022 was £14.1m. These numbers were revealed at Kambi’s capital markets day, which resulted in the company’s share price rising by 8%.
Kambi is one of the sports betting industry’s leading independent B2B provider of premium technology and services. It works with some of the leading regulated sports betting operators and offers first-class sports betting experience. The company prides itself on its “data driven sportsbook core and flexible technology”, which it says allows and encourages bookmakers to be innovative and promotes variety and uniqueness. Some of the main features and services of the technology Kambi offers include user interface, customer intelligence, risk management, and odds compiling.
Kambi was founded in 2010 and is based in Malta. In the past 13 years, the company has formed partnerships with some of the biggest names in sports betting across the world, and currently works with over 40 sports betting sites on 6 different continents. Currently, Kambi employs over 800 people and has offices in Malta, London, Sydney, Manila, Bucharest, Philadelphia, and Stockholm. In 2021, it won the Online Sports Betting Supplier award at the Global Gaming Awards in London.
A number of sports betting providers featuring on our list of UK Betting Offers for 2023 use Kambi’s services. These include Grosvenor, Unibet, 888sport, Casumo, Leo Vegas, Mr Green, 32 red. These are all well-established UK sports betting sites which are favoured by bettors and gaming fans because of their excellent customer service, intuitive features and information, and user-friendly, no-hassle interface, all of which involves Kambi’s services and technology. It is worth noting that Unibet currently have an introductory offer for new customers whereby bettors receive £40 moneyback bonus on their bets, and £10 casino bonus.
In addition to the successful reports from 2022, Kambi bosses expect significant rise in revenue and profit between now and 2027. Indeed, in 2027, the company’s projected revenue sits between £263.4m and £439m, which is a 2-3 times increase compared to 2022. The company also expects that its earnings before interest and taxes (EBIT) will increase significantly and will exceed £131.7m in 2027.
Speaking about the future projections, Kambi’s CEO and founder, Kristian Nylén said:
“As we look to push product boundaries even further and deliver high-quality modular services, we are in a strong position to evolve our business model and capitalise on the growing revenue opportunity of an expanding global sports betting market.”
Nylén explained that the company is now well-established in the gaming and sports betting market and that only few operators can compete with the products and services it provides. He pointed out that 2022 was a record year for new sign-ups, and that the number of bets the company processes on a daily basis is bigger than the number of orders Amazon receives. Nylén added that the past few years have been very eventful and that the pandemic resulted in several customers having to stop using Kambi’s services, however the company has recovered in the relative calm of 2022 and can now “really focus on the business again”. According to Nylén, Kambi had a “great commercial momentum” in 2022.
The projected revenue and profit increases between now and 2027 appears to be based on the company’s decision to start offering modular services and algorithmic trading. Instead of providing sports betting providers with a full and comprehensive sports betting platform, Kambi will start selling its services individually, in modules, depending on the needs and requirements of its customers. This, according to Nylén, will provide Kambi with a unique selling proposition. In addition to selling standalone services, Kambi is expecting to expand its total addressable market and grow in core markets, particularly in the United States, which will further help increase its revenue and profit and achieve its 2027 targets.