Kambi withdraws 2027 financial targets following regulatory delays

Lea Hogg July 4, 2024

SiGMA news

Kambi Group has decided to withdraw its 2027 financial targets due to slower-than-expected regulatory progress in key markets. Initially set in January 2023, the targets aimed for revenue between €330m and €500m, and EBIT exceeding €150m. However, a review of the underlying assumptions began in February. The board concluded that while Kambi has made progress in areas within its control, the slower regulatory progress in key markets would likely delay revenue. During its Q1 2024 results presentation, Kambi emphasized the importance of regulatory progress in the Americas and strategically important Asian countries for achieving its 2027 targets. The company noted that the pace of sports betting regulation has slowed, with California unlikely to regulate sports betting before 2027.

Slower-than-expected regulatory progress impacts revenue projections

Kambi had projected California to contribute approximately €20m to €25m in revenue in 2027. Earlier this week, Kambi announced Werner Becher as its new CEO, effective 25 July. The board will support Becher in executing the company’s long-term strategy and extending Kambi’s lead as a sports betting provider. Long-term financial targets will be evaluated with the new CEO and communicated when appropriate. In Q1 2024, Kambi generated €43.2m in revenue, a slight decline of 2 percent compared to the same period last year. Despite this, EBITDA increased by 10 percent year-on-year, reaching €14 million. Outgoing CEO Kristian Nylén suggested that Kambi had built solid foundations for the future. The company reiterated its 2024 revenue guidance, estimating between €170 million and €180 million.