An enhanced delivery of retail solutions, particularly regarding on-property sportsbooks at a variety of US-based casinos, has been highlighted by Kambi as the company provides its 2018 full year and fourth quarter financial report.
2018 Q4 launches at New Jersey’s Resorts Casino undertaken with DraftKings, and alongside Rush Street Interactive at Rush Street Gaming’s SugarHouse Casino and Rivers Casino, have been added to in 2019 following an agreement with Greenwood Gaming & Entertainment and it’s Parx Casino and South Philadelphia Turf Club entity’s.
Kambi, whose powered sportsbook generated 85 per cent of the Garden State’s revenue in December, has also seen customers increase self-service-betting-terminal orders, whilst also working with ATG for the launch of sports betting across approximately 2,000 retail stores in Sweden.
Group CEO Kristian Nylén commented on Kambi’s retail provisions, which is being undertaken at a much larger scale than previously: “While there were many positive aspects to our Q4 2018 performance, the highlight was Kambi’s retail delivery. During the quarter, Kambi successfully launched on-property sportsbooks with DraftKings at the Resorts Casino in New Jersey, and with Rush Street Interactive in two casinos in Pennsylvania.
“Furthermore, much of the planning and preparation work for the launches of ATG in 2,000 retail stores in Sweden, and two properties owned by new customer signing Greenwood Gaming and Entertainment in Pennsylvania, took place in Q4, enabling their successful launches in January 2019.
“With the US market high on Kambi’s priority list, our ability to demonstrate our high-quality on-property Sportsbook and prompt time-to-market leaves us well-placed moving forward, particularly considering the emphasis US operators and state regulators place on the retail channel.
“When also factoring in the early success we have had online in New Jersey, I’m not surprised Kambi is now seen as the leading multi-channel sports betting supplier in this burgeoning market.”
Kambi also stressed an expectation that the number of legalised and regulated states could double during the next 12 months, identifying current legislative movements in Connecticut, Massachusetts, Michigan and New York as potential targets for expansion in the coming months.
Kambi’s Q4 financial performance within its latest report was set against a tough year-on-year comparative period, with revenue amounting to €21.7m (2017: €19m) for the quarter and €76.2m (2017: €62.1m) for the full year.
Operator turnover growth came in at 42 per cent, with profit after tax for the fourth quarter of 2018 reported as €3.3m (2017: €3.9m) and €9.8m (2017: €5.9m) for the 12 month period.
Nylén explained: “It gives me great pleasure to present another strong quarter for Kambi, bringing to a close what was the most successful year in our history. Thanks to the hard work of all Kambi staff, Q4 2018 produced another period of financial growth, new customer signings and regulated market entries.
“Kambi’s operator turnover increased by 42% year-on-year in Q4 2018 while revenue was up 14%. Meanwhile, operator trading margin came in at 8.5%, once again above our long-term expected average.
“Bearing in mind the comparative period in 2017 delivered Kambi’s highest ever operator trading margin, our Q4 2018 performance is particularly pleasing and highlights the positive momentum we have built within the business. “
Adding: “Reflecting on the year as a whole, 2018 will be remembered as one of achievement and one in which Kambi reached new heights. And although much hard work remains in front of us, the strong foundations we have put in place leave me confident Kambi can remain on this upward trajectory throughout 2019.
“The year has already begun positively with the successful launch of new customers in multiple markets and the signing of an agreement to relaunch the popular German sports betting brand mybet later this year. The business remains in great shape for the challenges and opportunities that lie ahead.”