Revenue decreases by 11.5% for Kambi in Q2, while EBITA is cut in half, following departure from Penn.
In a recent financial report, Kambi Group, a leading sports betting supplier company, announced a decline in its earnings for Q2 2025. The company's adjusted EBITA dropped by half to €3.7 million ($4.4m), marking a 23% year-on-year decline compared to Q2 2024's €12.4m. This news sent shares in Kambi plunging nearly 9% immediately after the market opened.
Several key factors contributed to Kambi's revenue and earnings decline in Q2 2025. The absence of one-off transition fees, which boosted the company's revenue in Q2 2024, was a significant contributor. Excluding these fees, the revenue decline was more modest at 2%.
General economic conditions also played a role in Kambi's performance. Softer macro-economic conditions contributed to a decrease in revenue, as businesses across industries faced challenges. Regulatory hurdles in markets such as the Netherlands and Colombia further impacted Kambi's earnings. Dutch deposit limits and Kindred’s exit from various markets affected revenue, as did regulatory changes in these markets.
A quieter sporting calendar during Q2 2025 also impacted Kambi's income. This period typically sees less activity in sports betting, which affected the company's performance. Foreign exchange fluctuations and a 4.5% decline in operator turnover due to industry-wide factors also contributed to the decline in earnings.
Across H1 2025, Kambi's revenue fell 7.9% year-on-year to €81.9m. The EBITDA margin for Kambi in H1 2025 slipped to 28.7% from 33.9%, while the EBITA margin dropped by 44% year-on-year to 9.2% in Q2 2025. The EBITDA margin for H1 2025 was 28.7%, down from 33.9% a year earlier.
Despite the challenging Q2 2025, Kambi remains optimistic about its future prospects. The company is focusing on expanding its market presence, improving its product offerings, and leveraging its strong partnerships to drive growth. Kambi's leadership team is confident that the company will bounce back and deliver strong results in the coming quarters.
The decline in Kambi's EBITA can be attributed to the absence of one-off transition fees, general economic conditions, regulatory hurdles in specific markets, a quieter sports calendar, and foreign exchange fluctuations. In spite of the revenue loss in Q2 2025, Kambi is optimistic about their future by focusing on market expansion, product improvement, and leveraging strong partnerships to generate growth.
