Trading On margin

Strong US performance contributes to significant Q3 gains for Kambi

Image source: Kambi

Sports betting technology company Kambi released its Q3 2021 report, citing strong performance from the U.S. sector which contributed to a 48% year-over-year increase in quarterly revenue to $ 48.2 million. Revenue for the first nine months of the year was $ 147.8 million, eclipsing the total for all of 2020.

Operating profit (EBIT) for the third quarter of 2021 was $ 17 million ($ 7.5 million), at a margin of 35.4% (23.3%), and $ 58 million ($ 11.6 million), at a margin of 39.2% (14.2%) for the period January to September

The company reported after-tax profit of $ 13.8 million ($ 5.9 million) for the third quarter of 2021 and $ 46.7 million ($ 7.9 million) for the period January to September.

CEO Kristian Nylén, updating investors, said: “I am delighted to report another excellent quarter for Kambi, with strong financial results against challenging 2020 comparables, which is a testament to our robust business model and the hard work of our staff around the world.

“Kambi’s third quarter revenue increased 48% year-over-year, the operating margin was again strong at 35% and we continue to be very cash-generating. Excluding DraftKings, operators’ revenue is up 10% year-on-year, underscoring the underlying growth in the business.

“We got off to a good start in the new NFL season, which started on September 9, with our platform outperforming the competition and our market-leading Bet Builder product engaging a large number of punters and returning a higher average trader profit margin.

In addition, third quarter sales were driven by our continued expansion in the United States, including day one launches in Arizona, the 15th state in which Kambi has launched. In total, Kambi had about one launch per week on average throughout the quarter. “

In reference to Penn National Gamingthe decision to acquire a Canadian sports media company the score, Nylén added, “It is incredibly difficult, as well as expensive, to create, maintain and continue to develop a first class sports betting site, as we have seen with the unsuccessful efforts of others in the past.

“In the meantime, we will continue to support their growth with our fantastic platform and service that we have built over many years, which remain very attractive to our growing list of potential partners.

“In summary, we have performed well and the future looks bright. We currently have as strong and diverse a sales pipeline as I have experienced. As the global regulatory trend continues, we are in an excellent position to capitalize on future opportunities as they arise, and we have announced the implementation of a share buyback program. . “

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