Kambi lauded further US expansion and entered into two main collaborations as the company sees growth-related costs having a knock on Q3 profit impact.
While revenue increased by 12.2% to € 23 million (2018: € 20.5 million), income dropped to € 2.3 million (2018: € 3.3 million), while operating costs increased by 20.2% to € 19.6 million (2018: € 16.3 million).
Kristian Nylén, CEO of Kambi, commented: “The third quarter is traditionally a challenging one for the sports betting industry, particularly in a year with no major summer football tournament.
“This, along with our ongoing investments to capitalise on the huge US opportunity, was the reason for the year-on-year decrease in operating result. However, despite the tough World Cup comparatives and a relatively quiet July sporting calendar, I’m pleased to report Kambi Q3 revenue grew 12 per cent year-on-year while operator turnover increased 23 per cent.”
With Kambi adding to a roster of customers that boasts Greenwood Gaming and Entertainment, Mohegan Gaming and Entertainment, and Rush Street Interactive, the US has again become a major focus for the company in its latest financial report.
First, the sports betting services company partnered with Penn National gaming operator to significantly boost their market access capabilities across the nation before Jack Entertainment was brought on board to expand their presence across The Buckeye State.
Also highly praised were multiple Q3 launches, as Kambi saw online or on-property debuts in New York, Iowa, Indiana, Pennsylvania, New Jersey, and West Virginia.
Nylén added: “We signed two new customers during the quarter, the first being Penn National Gaming, the largest regional gaming operator in North America. With market access to as many as 19 states, Penn National was always a key US target for us.
“In addition to the land-based establishments Penn National operates, the company has a sports betting philosophy that complements our own, which bodes well for a long and successful relationship.
“We also signed a deal with Jack Entertainment, which covers two retail establishments and an online offering in Ohio. A digital-savvy operator with a strong, local brand, Jack Entertainment is an operator we are excited about working with.
“Meanwhile, we also secured contract extensions with NagaWorld and DraftKings the latter of which has already seen us enter a number of additional states as we build upon the partnership’s early success in New Jersey.”