Kambi Slashes Q3 2022 Earnings, But Stays Afloat with Resilience
Kambi's Q3 Revenue Decreases, Yet Operator Income Increases
In a recent financial announcement, Kambi, a leading B2B sports betting platform, shared its bleak earnings for Q3 2022. While the revenue hit €36.7 million ($36.8 million), it dropped by a staggering 12% compared to the same period in 2021, which brought in €41.6 million ($41.7 million). The EBITDA for this quarter dipped to €10.7 million ($10.7 million), a 47% drop from Q3 2021.
Kambi's Q3 2022 Unaudited Results
The revenue decrease was mirrored in the company's operating profit and profit after tax. Q3 2022 operating profit stood at €3.9 million ($3.9 million), a 74% drop compared to the same period last year. Profit after tax also took a hit, dwindling to €2.6 million ($2.6 million), a 78% drop from Q3 2021.
Even though the numbers were disappointing, Kambi has reported an operator turnover increase of 12% for the quarter. This growth was attributed to new market launches, fresh partnerships, and an expansion of its global network. In Q3 2022, Kambi partnered with ilani, Oaklawn Racing Casino Resort, Mohegan, and Ondiss, and acquired front-end specialist Shape Games for $78 million.
Navigating Q3 Challenges
Given the fewer sports events during the third quarter, the results were predictable, but Kambi managed to partially offset the revenue drop by capitalizing on these partnerships and acquisitions.
Kristian Nylén, Kambi's CEO, acknowledged the challenges of the third quarter due to the decreased sports events schedule, global economic uncertainties, and rising cost of living. Despite these obstacles, Kambi was able to demonstrate resilience with a 12% increase in operator turnover.
Looking forward, Nylén is optimistic about the upcoming US basketball season and the World Cup, both of which are expected to boost Kambi's performance and deliver strong results before setting the stage for an exciting 2023.
- The gambling industry, with Kambi as a significant player, experienced a drop in Q3 2022 earnings, as Kambi, a B2B sports betting platform, reported a 12% decrease in revenue compared to the same period in 2021.
- The struggling Q3 2022 financial results of Kambi were reflected in their operating profit and profit after tax, which saw a 74% and 78% decrease respectively compared to the same period last year.
- However, Kambi managed to partially offset the revenue drop by capitalizing on new market launches, fresh partnerships, and expansion of its global network, leading to a 12% increase in operator turnover.
- In Q3 2022, Kambi partnered with ilani, Oaklawn Racing Casino Resort, Mohegan, and Ondiss, and acquired front-end specialist Shape Games for $78 million.
- Despite the challenges of fewer sports events, global economic uncertainties, and rising cost of living, Kambi demonstrated resilience, thanks to its strategic partnerships and acquisitions.
- Looking towards the future, Kambi's CEO, Kristian Nyleén, is optimistic about the upcoming US basketball season and the World Cup, which are expected to boost Kambi's performance and deliver strong results before setting the stage for an exciting 2023.
- The surprising resilience shown by Kambi in the face of Q3 2022 challenges, combined with the expected boost from upcoming sports events, could make Kambi an interesting investment prospect for those in the business, finance, and technology sectors.
