Pennsylvania is Kambi’s most active market, with the provider involved with five online skins and at eight retail properties in the state, via partnerships with Rush Street Interactive, Kindred, Parx and DraftKings.
Kambi also has a significant presence in New Jersey with four online skins and one retail location, while two online skins and three land-based sites are using Kambi technology in Indiana, and one of each in West Virginia. The provider also has an online presence within New Hampshire, as well as land-based agreements in Iowa, Mississippi and New York.
Europe remains Kambi’s main source of income, but due to ongoing expansion in the US, the gap between the markets is closing. At the end of the fourth quarter, Europe was responsible for 61% of total revenue versus 37% for the US, compared to an 82% and 16% split at the same point in 2018.
In terms of spending for the year, total operating expenses were up 22.2% year-on-year to €77.6m, mainly due to ongoing expansion efforts in the US. Kambi’s main outgoing was staffing costs, up 33.3% from €28.2m to €37.6m for the year.
However, higher spending did not stop Kambi from posting profit growth for the year, with profit from operations increasing 15.6% year-on-year to €14.7m.
“Looking back on 2019, it was another great year for Kambi, as we continued to build out a fantastic sports betting product, expanded into multiple new markets, and signed six new partners, all of which leaves us in a great place for 2020,” Kambi CEO Kristian Nylén said.
“The evolving nature of the sports betting industry means there will always be challenges to overcome but I know we have built a robust business with the capability and strength to withstand these pressures,” he added.
“While much of the growth was derived from our US partners, we also saw double-digit turnover growth in markets outside of the US, all of which contributed to strong revenue growth of 23%. We operate in a fast-growing market, one which continues to embrace regulation and will therefore present Kambi and our partners with exciting opportunities for many years to come.”
“Be in no doubt Kambi is well positioned both in the US and globally and I look forward to a prosperous 2020.”
Source: GMB / iGaming Business