Kambi Group has praised its ‘resilience’ in navigating the impacts of COVID-19, as the group places an increased focus on its US expansion.
Publishing its Q2 report, Kambi highlighted that the pandemic, coupled with the temporary closure of US casinos during the pandemic, has resulted in a ‘greater impact on Kambi’s US-facing business compared with other regions’.
Revenues for the quarter took a 32 per cent hit, falling from €21.6m in Q2 2019 to €14.8m, while EBITDA decreased to negative €3.4m, down from €2.5m 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.”
Among its highlights for the quarter, the sports betting platform and systems provider praised its continued US expansion, having completed online launches in both Colorado and Illinois by supporting Rush Street Interactive in taking the first legal online bets in both states.
The US and Central America has become a key focus for Kambi, according to its Q2 report, as its geographical dependency on the European market decreased from 77 per cent in Q2 2019 to 73 per cent.
Operating expenses for Q2 2020 dropped to €18.1m from €19.1m in Q2 2019, while operating expenses compared to Q1 2020 dropped by €2.9m, 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’.
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.”