Canada
United States
New Zealand
Australia
Ireland
Financial Performance in Focus
In its Q2 report, Kambi, a notable player in the gaming industry, announced a year-on-year revenue increase of 24%, amounting to €42.9m ($47.5m). This represents a marginal but commendable improvement from Q2 2021. However, the company’s financial performance wasn’t all positive. Operating profit saw a significant drop of 25% to €3.7m, and net profit also followed suit, decreasing by 24% to reach €2.5m. Earnings per share were not spared either, experiencing a 24% dip.
To enhance its financial health, Kambi took decisive measures including the repayment of a €7.5m convertible bond that was previously held by the Kindred Group. The company also repurchased 381,476 shares at a total cost of €7.2m. Despite these strategic financial moves and the growth in revenue, Kambi’s share price fell by 5% following the release of the Q2 report, reflecting investor concerns over the falling profits.
Milestones and Future Outlook
Kambi’s CEO, Kristian Nylén, underscored the significance of two major developments during the quarter. The first is the acquisition of Shape Games, a strategic move to enhance Kambi’s product portfolio, including casino games. The second is the signing of Bally’s Corporation as an operator partner, a development Nylén described as a “major milestone” for Kambi. He said, “We are thrilled to have Bally’s Corporation join the Kambi network. This partnership underscores our market leadership position.”
The loss of DraftKings as a key client was undoubtedly a blow to Kambi. However, the company remains optimistic about its future. Nylén highlighted their flexible product strategy and the potential growth opportunities presented by Bally’s expansive global footprint.
In conclusion, Kambi’s Q2 report paints a picture of a company in transition. While the strong revenue growth is encouraging, the decline in profits signals challenges that need to be addressed. Nevertheless, with new partnerships and strategic acquisitions on the horizon, there’s reason for optimism, despite the initial negative reaction in the stock market.
