Kambi Group plc, a global sports betting provider, has released its 2020 Annual Report and Accounts, which reveal record-breaking financial performance for the trading year, including a 28 percentage growth in sales and a 27 percentage increase in operating margin.
According to the headline numbers, net sales in 2020 will be $138.6 million, up from $108.7 million in 2019. Despite a notable period of the year involving a shortage of sporting activities due to the COVID-19 pandemic, the rise of 28 percent year over year reflects continued progress, according to the company.
For the full year 2020, earnings before interest, taxes, depreciation, and amortisation (EBITDA) were $58.5 million (2019: $34.3 million), while benefit from activities was $37.9 million (2019: $17.3 million), highlighting the power of Kambi’s flexible market model. For the fiscal year 2020, the post-tax benefit was $28.4 million (2019: $12.3 million).
Production expenses of $19.4 million (2019: $17.6 million) were capitalised in 2020. Sportsbook growth, US product growth, business extension, and the evolution of the firm’s retail platform were the main components of capitalised production costs in 2020.
CEO Kristian Nylén said in a statement that he was updating investors on developments in the United States: “Kambi’s continued expansion as more jurisdictions put sports betting frameworks into place illustrates this capability. The growth of the US market is a core driver for the business and remains a significant area of focus for commercial expansion.
“State-by-state regulatory efforts continue to gather pace, with increasing emphasis being placed on mobile and online in addition to on-property wagering. Our record of delivery in the US speaks for itself.
“We are now live in 14 states, having achieved market firsts with our partners in 10. We have a diverse group of partners with ambitious plans to capitalize on the ongoing spread of regulation, and we look forward to helping them to make the most of the opportunities this affords.”
Success and current status
Talking more widely about the firm’s success and current status, he added: “As I look back on a year unlike any in living memory, and the world transitions to a ‘new normal’, I am proud to be able to say that the business is in fantastic shape, having passed its toughest of tests.
“Kambi is the established sportsbook of choice for operators with the ambition to achieve market leadership. Scalability coupled with technological and regulatory expertise have been central to our business model since the company was founded, and our focus on these areas has been vindicated by the strides we have made in 2020 and the position of real strength we occupy. I am excited by the prospect of building on this progress throughout 2021 and in turn delivering shareholder value.”
Despite the pandemic, Kambi aims to grow in the United States, with the Pokagon Band of Potawatomi’s Four Winds Casinos – a US tribal developer with three sites in Michigan and one in Indiana – joining the global network in 2020.
In August, the firm agreed to a multi-year deal with Churchill Downs Incorporated (CDI), and later in the year, it helped Penn National Gaming open its Barstool-branded online sportsbook in Pennsylvania.