Nordic Nasdaq-listed industry sports betting platform and software supplier Kambi Group Plc (Kambi) has declared a difficult start to 2017, as the company’s operating profits and margin were hit by player friendly football results recorded during the final weeks of Q1 2017 (period ending 31 March).
The company had previously sent a communication to investors detail period impacts. Despite posting strong group revenues of €14.2 million, up 7% on Q1 2016’s €13.3 million, Kambi would declare an operating profit of €1.4 million (Q1 2016: €2 million).
Issuing a market update, Kambi governance detailed the impact which the player friendly results had on its operating margins which had declined to 10%, a significant decrease on Q1 2016’s 15% hold.
Despite unfavourable Q1 2017 conditions, Kambi governance were positive of the firm’s position moving forward, detailing the continued strong growth of in wagering of its client network which had grown 27%. The company further detailed that it would continue to strengthen its commercial pipeline, which had gained a number of new Tier-1 clients in 2016.
Kristian Nylén, CEO of Kambi would detail to investors: “The latter part of the quarter resulted in an unusually high number of player-friendly outcomes in the major football leagues, which impacted the trading margin. It is in the nature of the business for the trading margin to fluctuate between quarters depending on the result of sporting events.”
“The underlying strong performance and momentum within the company is unaffected by these events. This makes me confident in our strategy and business model which creates value for our operators.”
“As mentioned in the Q4 2016 report, we are delighted to have signed a contract with Greentube in February and look forward to helping expand its online sports betting offering with Kambi’s premium Sportsbook across Europe. We continue to develop our Sportsbook to carry on delivering an exceptional experience for the end users.”