2020 was a year like no other. Nobody would have faulted any company for less-than-flattering earning reports. But global sports betting supplier Kambi Group plc is seemingly one company that was able to shrug off the intense, all-encompassing effects of a global pandemic and post record-breaking financial results.
Kambi, a leading global sports betting supplier, late last week released the results from its 2020 Annual Report and Accounts and it revealed some impressive evolution of the betting brand. Growth, especially in the US carried the company to what they describe as record-breaking expansion, most of which can be traced back to the bustling US market.
The findings in the 2020 report prompted Kambi CEO Kristian Nylén to say: “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.”
A Peek at the Numbers
Kambi Group plc is reporting total revenues, or net sales for 2020 of $138.6 million, which represents an impressive 28% increase from the $107.7 million the company brought in during the 2019 fiscal year. The jump is especially impressive considering the effects that COVID-19 had on the global sports and gambling scene.
Kambi EBITDA (earnings before interest, tax and depreciation and amortization) also showed a notable increase year-over-year. The 2020 figure came in at $58.5 million, $25.2 million more than the $34.3 million the company made in 2019. Reported profits were $37.9 million in 2020, up from $17.3 million in 2019 and post-tax profits for the firm were reported to be $28.4 million, another jump from 2019’s $12.3 million.
No Slowdown Expected in 2021
Kambi has spent the better part of two years elevating themselves into the elite class of gambling service providers. While the last two years has seen impressive growth, 2021 figures to be their year to shine.
As CEO Kristian Nylén put it: “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.”
What Went Right in 2020
Kambi was as aggressive as any other legal sports betting entity in 2020. New partnerships aimed at the advancement of their product included Churchill Downs, Four Winds Casinos, the Belgian National Lottery, and JVH gaming and entertainment group.
Kambi was also able to form a relationship with Penn National in 2020 to help the much anticipated and uber-hyped Barstool Sportsbook brand get off the ground in the Heavyweight state of Pennsylvania.
All together, Kambi had a hand in launching 50 online and on-property platforms in 2020.
During 2020, Kambi was able to keep production expenses reasonable, despite serious growth. 2020’s expenses came in at $19.4 million, an expected, yet palatable rise from the $17.6 million over the same period last year.
With 2020’s launch-spree, Kambi took their portfolio to include in excess of 30 operators worldwide, over six continents. Their technology has become one of, if not the most trusted in the world and a hot commodity as the pace of legal sports betting in the US and around the world reached a fever-pitch.
Going Forward
Kambi is expected to remain a top name in not only the US legal sports betting industry but the global scene as well. Its impending growth plan includes the Pokagon Band of Potawatomi’s Four Winds Casinos which signed on with the company last year and has three locations in Michigan and one in Indiana, just to name one. The sky is the limit from there.
Kambi will plow forward hoping that revenue growth far outpaces costs, just like it did in 2020. With an iron-clad reputation, with exponential growth within their space and with a business model that Kambi currently employs, it is difficult to see any holes in the Kambi model as we head deeper into 2021.
