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Kambi’s Annual Revenue Up 13% In 2023, CEO Pushes For Better Performance

Written By J.R. Duren on February 23, 2024
Man With Calculator Financial Graph

Sports betting services firm Kambi announced during its Q4 earnings call a 13% increase in fiscal-year annual revenue despite a 2% decline in annual quarterly revenue.

Kambi generated $187.6 million in FY 2023 and $47.9 million in Q4.

While the positive yearly revenue growth was a good sign, Kambi CEO Kristian Nylén said he expects more out of his company’s financial performance.

A look at the key stats for Kambi’s 2023 performance

A company’s quarterly and yearly earnings calls help investors understand how the company is performing.

Typically, the call will include an overview of the company’s balance sheet, which includes metrics like revenue, earnings before deductions and cash flow. Additionally, company execs will talk about where the company stumbled, where it excelled, factors that contributed to performance, and future plans.

Kambi Group‘s balance sheet highlighted the following:

  • A 13% increase in revenue in 2023 compared to 2022
  • A 2% decrease in revenue in Q4 2023 compared to Q4 2022
  • An 11% drop in earnings after deductions
  • A 41% drop in cash flow (money coming in versus money going out)
  • A 43% drop in yearly earnings per share (a profitability metric)

The mixed bag of revenue growth and lagging profitability led Nylén to express some disappointment about the company’s financials. “As I look back on the year, I have two overriding takeaways, the first being I’m not satisfied with our financial performance,” he said in Kambi Group’s Q4 2023 financial report.

Nylén pointed out that several of its partners, including Shape Games, Bally’s, and two sportsbooks, weren’t performing as expected. But the CEO went on to say that he’s happy with the moves the company made to build long-term success.

“We made good progress in building the foundations that will ultimately lead to a much-improved financial performance in the future, giving me confidence we’re on the right path for the long-term,” Nylén said.

Future partnerships should shore up soon for Kambi Group

The foundation building that Nylén mentioned was a series of partnerships Kambi signed in FY 2023:

  • Bally’s Corp.: A prominent US retail and online casino and sportsbook brand
  • LiveScore Group: A European sportsbook operator that includes the Virgin Bet brand
  • Svenska Spel: Sweden’s state-owned sports betting operator

Recently, Kambi extended its sportsbook partnership with PENN Entertainment through 2025.

Nylén said the partnerships should show “meaningful revenue contribution” in the second half of FY 2024.

CEO frustrated about delays in key sports betting markets

Kambi had an eye on two key sports betting markets in 2023: California and Brazil. California’s push for legal sports wagering crashed and burned in 2022.

Brazil, on the other hand, legalized sports betting but won’t launch until Q3 2024. Also, legal operators in Brazil face stiff competition from offshore books.

“It is important to note that challenges do continue to exist, including a slower roll-out of newly regulated sports betting markets,” Nylén said. “The outlook in certain markets has not been as promising as previously anticipated, particularly in California where 2028 now appears to be a more realistic timeline for regulation.”

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J.R. Duren

J.R. Duren has covered the gambling beats for more than a dozen states for Catena Media since 2015. His past reporting experience includes two years at the Villages Daily Sun, and he is a first-place winner at the Florida Press Club Excellence in Journalism Contest.

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