Kambi Group, a global provider of sports betting technology and services, has released its Q4 and full-year 2024 financial results, demonstrating marginal revenue growth but encountering investor skepticism due to modest future projections. The company's revenue increased slightly, but EBITA and operating profit fell compared to the previous year, leading to a decline in share value.

Despite these challenges, Kambi continues to expand its market presence, securing major strategic partnerships in the U.S. and Brazil while increasing its long-term operator trading margin. However, cautious financial guidance for 2025 has left investors questioning the company’s growth trajectory.

Kambi’s 2024 Financial Performance

Kambi Group’s financial performance in 2024 was largely stable, with revenue growth recorded on an annual and quarterly basis, yet profitability metrics reflecting some declines.

Key Financial Highlights
Q4 2024 revenue: EUR 44.5 million ($46.6 million), a slight increase from EUR 44.3 million in Q4 2023.
FY 2024 revenue: EUR 176.4 million ($185 million), up from EUR 173.3 million in 2023.
Q4 EBITA: EUR 7.1 million ($7.4 million), down from EUR 8.5 million in Q4 2023.
FY 2024 EBITA: EUR 25.3 million ($26.5 million), with a 14.3% margin, slightly higher than in 2023.
Q4 operating profit: EUR 5.9 million ($6.2 million), lower than EUR 7.2 million in Q4 2023.
FY 2024 operating profit: EUR 20.1 million ($21 million), marginally higher than EUR 20 million in 2023.
Total expenses: EUR 38.5 million ($40.4 million) in Q4, and EUR 156.3 million ($164 million) for FY 2024, reflecting year-on-year increases.
Cash flow (excluding working capital and M&A): EUR 6.7 million ($7 million) for Q4 and EUR 25.9 million ($27.2 million) for FY 2024.
Earnings per share (EPS): EUR 0.170 ($0.18) in Q4, and EUR 0.515 ($0.54) for the full year.
While revenue grew, the decline in EBITA and operating profit suggests that Kambi faced operational and market pressures. Additionally, rising total expenses indicate higher investment costs, potentially for expansion initiatives and technology development.

Modest 2025 Guidance Weighs on Investor Sentiment

Kambi’s financial outlook for 2025 did not inspire confidence, leading to a decline in its stock price.

The company projected EBITA (acq) of EUR 20-25 million ($21-26.2 million) for 2025, indicating a flat or only slightly improved performance.
This conservative estimate suggests ongoing operational challenges, potentially rising costs or market saturation.
Following the earnings report, Kambi’s stock fell from SEK 124.50 to SEK 110, reflecting investor concerns over limited near-term growth.
The company remains profitable, but its slow growth projections have raised doubts about its ability to expand its market share against strong industry competition.

Strategic Partnerships and Market Expansion

Despite financial headwinds, Kambi has made notable progress in expanding its global footprint, securing high-value partnerships and regulatory approvals.

Major Business Developments in 2024
Hard Rock Digital Partnership – Kambi signed a landmark agreement with Hard Rock Digital, a major U.S. gaming and betting operator, expanding its presence in the North American market.
Nevada Licensing Approval – The company obtained B2B licensing clearance in Nevada, a key regulatory milestone for entering one of the largest sports betting markets in the U.S..
Expansion in Brazil – Kambi strengthened its presence in Brazil’s emerging online gaming industry, securing deals with Stake, BetMGM, and other operators.
Ontario Market Penetration – Kambi assumed FDJ Group’s sportsbook partnership responsibilities for the Ontario Lottery and Gaming Corporation, enhancing its North American portfolio.
These strategic moves reinforce Kambi’s ambition to remain competitive in the rapidly evolving global sports betting industry.

Improved Trading Margins and Product Innovation
Kambi has adjusted its long-term strategy to increase operator profitability and improve service offerings.

Key Initiatives
Raised long-term operator trading margin to 9.5-11%, which could enhance profitability for its sportsbook partners.
Invested in technology enhancements to improve betting odds feeds and risk management systems.
Expanded content aggregation partnerships to offer a broader range of betting markets and player experiences.
Despite some setbacks in earnings growth, these initiatives position Kambi for sustained success in the sports betting industry.

Competitive Landscape and Industry Positioning

Kambi operates in a highly competitive industry, facing major competitors such as:

DraftKings – One of the largest U.S. sportsbooks, leveraging an integrated betting platform and strong market share.
FanDuel – A dominant player in the sports betting sector, known for user-friendly technology and aggressive marketing.
BetMGM – A growing force in the online gaming sector, expanding rapidly in North America and international markets.
To maintain its market position, Kambi must differentiate itself through advanced technology, reliable odds feeds, and strategic partnerships.