Sports betting platform and systems provider Kambi Group has lauded its ability to ‘weather COVID-19’s profound impact on the sporting calendar’ as the cancellation of live sports hinders business operations during the quarter.
Publishing its Q2 2020 report, Kambi revealed that ‘the combination of resilient betting volumes and a gradual return of major leagues and sports, complemented by significant cost reduction measures’ have supported the group to mitigate any shortfall in activity.
Revenues for the quarter took a 32% hit, falling from €21.6 million in Q2 2019 to €14.8 million, while EBITDA decreased to negative €3.4 million, down from €2.5 million in the same quarter last year.
Kristian Nylén, Chief Executive Officer, said: “After what has undoubtedly been a testing period for Kambi, as it has for everyone in our sector, I’m proud of the resilience and underlying strength we have displayed in recent months, which bodes well for our future.
“Of course, the financial numbers published today aren’t as I would have hoped back when we were planning for 2020, but they do reflect a business able to deliver when faced with both adversity and uncertainty.
“Given the impact the pandemic is having on the sporting calendar, to generate 68% of the revenues of the comparative quarter last year is a great achievement. Furthermore, operator turnover accelerated through the period, finishing with year-on-year growth for June, which tells me we are on the right track as a business and well positioned for the second half of 2020 and beyond.
“Our ability to successfully navigate the COVID-19 crisis was underpinned by the exceptional contribution from our incredible staff around the globe, who continued to provide a fantastic service to our partners and their end users during these difficult times.”
Operating expenses for Q2 2020 dropped to €18.1 million from €19.1 million in Q2 2019, while operating expenses compared to Q1 2020 dropped by €2.9 million, largely driven by ‘areas including data supply, travel and marketing, and the rest from government subsidy schemes’. Kambi expects an increase in operating costs as the group returns to ‘pre-covid levels’.
Kambi also noted a shift in focus of geographical operations as a result of ‘increasing contributions from the emerging US market, alongside the success of Kambi’s Central and South American operators’.
Focus on the European market decreased from 77% in Q2 2019 to 73%, as the group continues on a trajectory towards increased diversification of both products and customers.
Nylén concluded: “In parallel to our delivery around sports, we extended our run of market firsts when launching online in both Colorado and Illinois, with our partner Rush Street Interactive taking the first legal bets in both cases. Our record of launching multiple partners across various states in the US is something I am proud of and I know sets us apart from our competitors.
“It was also pleasing to secure an extended agreement with Corredor Empresarial and its BetPlay brand. BetPlay has enjoyed great success in the regulated Colombian market, becoming market leader within 12 months of launch, a position it maintains today. While much attention is on the US market, the Latin American market also holds great potential for Kambi.
“Although challenges remain, and an element of uncertainty persists, the past few months have proven Kambi can overcome the toughest of tests, and emerge the other side stronger for it. With sports gradually returning and our ambitious partners keen to catch up on lost time, we’re ready for an exciting second half of the year.”