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Kambi's Q3 Financials Reveal Growth and Strategic Developments

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Kambi reported a third-quarter revenue of €42.1m ($44.4m), marking a 15% increase from the third quarter of 2022. The rise in revenue was primarily influenced by specific non-recurring fees, particularly those associated with Penn and Shape Games.

The company's EBITDA for the same quarter stood at €13.9m, a 30% increase from the previous year's period. Operating profit saw an uptick of 19% to €4.6m. Likewise, profit after tax also increased by 37% to €3.5m.

In terms of per-share earnings, both the earnings per share and fully diluted earnings per share escalated by 39%, settling at €0.117 and €0.116, respectively.

A Quarter of Partnerships

During the quarter, Kambi introduced 24 new partnerships, including eight in the United States with its new partner, Bally's. These launches took place in states such as Arizona, Colorado, Mississippi, New Jersey, Ohio, and Virginia. The chart indicates some fluctuations in Kambi's revenue across quarters; however, a year-on-year increase is evident. The uptick in Q4 2022 was partially influenced by the FIFA World Cup.

In the same quarter, Kambi also facilitated the launch of Churchill Downs across seven physical locations on the inaugural day of regulated sports betting in Kentucky. In Maryland, the company initiated an online launch and two retail launches in collaboration with BetParx.

Region-wise, the Americas made up 50% of the total operator gross gaming revenue during Q3 2023, followed by Europe at 47% and the rest of the world at 3%.

In business developments, Kambi extended its contracts with ATG and Rank Group. The company also entered a comprehensive sportsbook platform agreement with Swedish operator Svenska Spel. Furthermore, it inked two additional partner agreements during Q3, notably linking with Prairie Band Casino & Resort in Kansas and Eyas Gaming in Brazil.

Sights Set on Increased Revenue

Regarding the company's future, Kambi aims to achieve 2027 financial goals that include tripling or quadrupling its FY2022 revenue levels to approximately €330-€500m and pushing EBIT above €150m. The strategy to meet these ambitious targets includes retaining major partners, implementing AI-based pricing models, partnering with tier-one operators, and entering a significantly regulated market in Asia.

Kristian Nylén, the CEO and Co-founder of Kambi, stated that their recent strategic partnerships with Svenska Spel and LiveScore Group have been a significant milestone in terms of existing sports betting revenue and align well with the company's long-term objectives.

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