Kambi withdraws 2027 targets as focus returns to Tech vision

Kambi Group Plc has withdrawn its long-term 2027 financial targets, which aimed to triple the revenue and EBIT results of the Stockholm-listed sports betting technology group.

The decision was announced by Kambi’s board, who have withdrawn ‘underlying assumptions’ to achieve 2027 targets of generating “revenue of 2-3x FY2022 levels, approximately €330m – €500m and EBIT in excess of €150m”.

The 2027 targets were first communicated in January 2023, providing investors a long-term view to triple FY2022 revenues of €166m and EBIT of €63m.

Leadership underscored the targets as part of Kambi’s new commercial strategy to address a global sports betting market of approximately €50 billion GGR by 2027.

The targets were based on the five criteria of: utilising platform flexibility to retain key partners, rolling out AI-powered pricing, extending North American contracts, signing tier-one operators across the product portfolio, and the opening of Asian markets.

However, following a review the Board “concluded that Kambi has made progress in areas within its control, however, slower-than-expected progress towards regulation in certain key markets would likely delay revenue from such markets.”

On Monday, Kambi announced the appointment of Werner Becher as CEO, who succeeds the 14-year tenure of company founder Kristian Nylén. The former CEO of Sportradar EMEA markets, Becher noted Kambi’s proven technology and commercial capacity in servicing 40 tier-1 operators, expressing his belief that Kambi will be at the forefront of the globally expanding sports betting marketplace.

“The Board will now focus its attention on providing Becher with its full support in executing the Company’s long-term strategy and extending Kambi’s lead as the world’s leading sports betting provider.”

Kambi expects 2024 to be a transitional year with revenue impacted by Penn’s online migration, renewed contracts with Kindred and other partners, and delayed regulation in the Brazilian market.

Of strategic relevance, 2023 saw Kambi reorganise its financial structures by repaying an €8m convertible bond held by former shareholder Kindred Group. This deal granted Kambi the independence to take control of its future strategic direction.

For 2024 trading, Kambi estimates revenue to be in the range of €170m-to-€180m, anticipating contributions from recent client wins towards year’s end and organic growth from existing partners.

Corporate objectives will prioritise commercialising the client services Shape Games UI/UX solutions and the esports data odds of Abios. Kambi will further launch its new Tzeract platform as the most sophisticated AI-powered trading solution for sports betting.