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Kambi Group Plc has notified markets that its short-term outlook for 2025 will be challenged by the technology migration of partners Kindred Group and LeoVegas AB.
The termination of contracts, combined with the new tax impacts of Colombia’s VAT and rising US state charges, is expected to influence Kambi’s financial performance, as the company sets its EBITA (acq) guidance at €20-25m for FY2025 trading.
Werner Becher, new CEO of Kambi, acknowledged the challenges ahead: “This year won’t be without significant challenges, with 2025 presenting a particular set of headwinds, which we expect to ease going forward. These include certain partners, particularly Kindred and LeoVegas, migrating away from our Turnkey Sportsbook, as well as rising taxes, such as the recently proposed temporary VAT in Colombia.”
The statement on short-term headwinds precedes Kambi’s Q4 and full-year 2024 results. The Stockholm-listed sports betting technology group continues to prioritise diversifying revenue streams and managing cost efficiencies to sustain long-term growth in 2025.
FY2024 accounts detail marginal improvements as Kambi registered corporate revenues of €176m, up 1% on FY2023 results of €173m. Year trading saw the group’s actualised EBITDA remain flat at €25m, as FY2024 operating profits stood unchanged at €20m.
Despite customer-friendly results in North America, Kambi’s network withstood the impact, matching Q4 2023 revenue comparatives of €44m. However, unfavourable sports results saw Q4 EBITDA decline by 6% to €16m (Q4 2023: €17m).
Leadership highlighted Q4’s positive commercial momentum as Kambi secured strategic partnerships, expanding its Odds Feed+ reach with Hard Rock Digital (US) and Rei do Pitaco (Brazil). In addition, Kambi strengthened its market presence through new contracts with the Ontario Lottery & Gaming contract novation (Canada) and a Turnkey Sportsbook deal with Soft2Bet (Europe & US).
Commercial activities were bolstered by Kambi initiating a cost-control efficiency programme aiming to secure annual savings of €6-10m. Becher stated: “The final quarter of 2024 was marked by significant achievements for Kambi. We concluded the year with new partner agreements across the majority of our product portfolio, initiated actions to address our cost base, and delivered robust Q4 2024 financial results.”
Moving into 2025, Kambi leads in Brazil as the sportsbook technology supplier for the launches of KTO, Stake, BetMGM, and BetWarrior. The Brazil launches are key to balancing and diversifying Kambi’s sportsbook network, primarily formed of partnerships in Europe and the Americas.
Kambi continues to work towards diversifying its revenue streams, as demonstrated by various partner signings and launches in recent months. On 1 January, the company went live in Brazil with KTO, signed in Q3 2024, as well as Stake, signed just last month.
Both KTO and Stake are utilising Kambi’s Turnkey Sportsbook in Brazil, along with BetWarrior and LeoVegas, the latter launching its BetMGM brand as part of a joint venture with Brazilian media company Grupo Globo.
Kambi’s AI-driven margin expansion has resulted in an operator trading margin rise to 10.0% (vs. 8.3% in 2023), powered by Tzeract’s enhanced efficiencies for products such as Bet Builder and player-based markets.
Countering headwinds, Kambi’s 2025 guidance anticipates revenue growth driven by full-year contributions from LiveScore, Svenska Spel, and Brazilian expansion, alongside increased Odds Feed+ adoption and AI-powered trading margin improvements, while expense management aims to reduce costs to €150-155m, in line with 2024 expenditure.
Becher stated: “Looking further ahead, the strategic initiatives we have undertaken – advancing AI innovation, expanding our product portfolio, and initiating a cost efficiency programme – along with our various partner signings, provide a solid platform for the future. The foundations we are building today will enable us to emerge stronger, more agile, and well-positioned for long-term growth.”
