Kambi Group has lauded its ‘resilience’ in handling the COVID-19 impacts, as the company puts greater focus on its growth in the US.
In releasing his Q2 report, Kambi pointed out that the pandemic, combined with the temporary closing of U.S. casinos during the pandemic, resulted in a ‘greater effect on the U.S.-facing sector of Kambi relative to other regions.’
Revenue for the quarter was a 32 percent hit, dropping from €21.6 million in Q2 2019 to €14.8 million, while EBITDA fell to €3.4 million , down from € 2.5 million in the same quarter last year.
Deputy chief executive Kristian Nylén said: “After what has undoubtedly been a testing period for Kambi, as it has for everyone in our sector, I’m proud of the resilience and underlying strength we have displayed in recent months, which bodes well for our future.
“Of course, the financial numbers published today aren’t as I would have hoped back when we were planning for 2020, but they do reflect a business able to deliver when faced with both adversity and uncertainty.
“Given the impact the pandemic is having on the sporting calendar, to generate 68% of the revenues of the comparative quarter last year is a great achievement. Furthermore, operator turnover accelerated through the period, finishing with year-on-year growth for June, which tells me we are on the right track as a business and well positioned for the second half of 2020 and beyond.
“Our ability to successfully navigate the COVID-19 crisis was underpinned by the exceptional contribution from our incredible staff around the globe, who continued to provide a fantastic service to our partners and their end users during these difficult times.”
Among its quarter highlights, the sports betting company and device provider commended its continued growth in the US, having completed online launches in both Colorado and Illinois by assisting Rush Street Interactive in taking the first legal electronic bets in both states.
According to its Q2 study, the US and Central America have become a key target for Kambi as its geographic reliance on the European market has declined from 77 percent in Q2 2019 to 73 percent.
Operating expenditure for Q2 2020 dropped to €18.1 million from €19.1 million in Q2 2019, while operating expenditure dropped by €2.9 million compared to Q1 2020, mainly driven by ‘areas like data supply, travel and marketing, and the remainder from government subsidy schemes.’ As the company returns to ‘pre-COVID rates’ Kambi expects an rise in operating costs.
Nylén concluded: “In parallel to our delivery around sports, we extended our run of market firsts when launching online in both Colorado and Illinois, with our partner Rush Street Interactive taking the first legal bets in both cases. Our record of launching multiple partners across various states in the US is something I am proud of and I know sets us apart from our competitors.
“It was also pleasing to secure an extended agreement with Corredor Empresarial and its BetPlay brand. BetPlay has enjoyed great success in the regulated Colombian market, becoming market leader within 12 months of launch, a position it maintains today. While much attention is on the US market, the Latin American market also holds great potential for Kambi.
“Although challenges remain, and an element of uncertainty persists, the past few months have proven Kambi can overcome the toughest of tests, and emerge the other side stronger for it. With sports gradually returning and our ambitious partners keen to catch up on lost time, we’re ready for an exciting second half of the year.”