Zona de Azar Sweden – Kambi Withdraws 2027 Goals
Sweden.- July 24, 2024 www.zonadeazar.com Kambi Group Plc has withdrawn its long-term financial targets for 2027, which aimed to triple the revenue and EBIT results of the Stockholm-listed sports betting technology group.
The decision was announced by Kambi’s Board of Directors, which removed the “underlying assumptions” to achieve the 2027 targets of generating “revenues 2 to 3 times the fiscal levels of 2022, approximately between €330 million and €500 million, and an EBITDA exceeding €150 million.”
The 2027 targets were first communicated in January 2023, providing investors with a long-term view to triple the fiscal revenue of 2022, which was €166 million, and the EBIT of €63 million.
The company’s management also mentioned that the objectives of Kambi’s new business strategy include targeting a global sports betting market of approximately €50 billion in GGR (gross gaming revenue) by 2027.
The goals were based on five criteria: leveraging platform flexibility to retain key partners, implementing AI-based pricing, extending contracts in North America, hiring top-tier operators across the product portfolio, and opening Asian markets.
However, after analysis, the Board “concluded that Kambi has made progress in the areas under its control. However, slower-than-expected progress in regulation in certain key markets is likely to delay revenues from those markets.”
Other Announcements from Kambi
On July 1, Werner Becher was announced as the new CEO, succeeding the 14-year tenure of the company’s founder, Kristian Nylén. Becher, former CEO of Sportradar’s EMEA markets, highlighted Kambi’s proven technology and commercial capability to serve 40 Tier 1 operators and expressed confidence that Kambi will be at the forefront of the expanding global sports betting market.
“The Board will now focus on providing Becher with full support to execute the company’s long-term strategy and on expanding Kambi’s leadership as the leading global sports betting provider,” commented the company.
Kambi expects 2024 to be a transitional year with revenues impacted by Penn’s online migration, contract renewals with Kindred and other partners, and delays in Brazilian market regulation.
Strategically significant, Kambi reorganized its financial structures in 2023 through the redemption of an €8 million obligation from former shareholder Kindred Group. This deal granted Kambi the independence to take control of the company’s future strategic direction.
For 2024 operations, Kambi estimates revenues will be between €170 million and €180 million, anticipating contributions from recent client acquisitions at the end of the year and organic growth from existing partners.
Corporate objectives will prioritize UI/UX marketing solutions from Shape Games Customer Services and Abios Esports Data Odds. Kambi will also launch the Tzeract platform as the most sophisticated AI-based sports betting trading solution.
Edited by: @_fonta www.zonadeazar.com
