DraftKings Departure Lingers Over Kambi Earnings, but Ontario Sports Betting Provides Lift

Kambi on Wednesday reported its financial results for the second quarter of 2022, noting that revenue fell to €34.7 million for the period, a 19% drop compared to a year earlier.

Last Updated: Jul 27, 2022 3:50 PM ET Read Time: 2 min
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The move by DraftKings Inc. away from Kambi Group PLC is still muddling the results of the latter, even as the provider of online sports betting technology is finding new customers in recently regulated states and provinces. 

Kambi on Wednesday reported its financial results for the second quarter of 2022, noting that revenue fell to €34.7 million for the period, a 19% drop compared to a year earlier. Revenue was €71.5 million for the year's first half, down 17%. 

Profit after tax for the three months ended June 30 was €3.3 million, a 75% decrease from a year ago. Profit for the first half was down 69%, to €8.8 million.

Shares of Kambi closed 2.8% lower in Stockholm on Wednesday, finishing the day at 176.05 krona apiece.

Despite the decline in revenue and profit, Kambi still claimed it was a "strong financial performance" amid a quirkier calendar of sporting events and the decision by DraftKings to stop using Kambi's back-end platform by the end of September 2021.

“In Q2, Kambi delivered another positive quarter with underlying growth remaining healthy and operator turnover up 16% when adjusting for the migration of DraftKings,” CEO Kristian Nylén said in the second-quarter report. “This performance was achieved despite a quieter than usual sporting calendar, particularly with the soccer World Cup taking place later in the year, outside its usual Q2 starting slot.” 

New faces, new places

Kambi is a Malta-headquartered company that provides sportsbook technology to operators such as Churchill Downs Inc., Kindred Group, and Rush Street Interactive. In its latest earnings report, the firm noted it is drumming up new business, including in the recently launched market for online sports betting in Ontario, Canada's most populous province. 

According to Kambi, the company completed 19 online and retail launches in the second quarter, such as by helping Unibet, LeoVegas, and BetRivers go live in Ontario on the first day of the province's new iGaming market. The company later did the same for NorthStar Bets

Kambi also has a partnership in place with Mohegan Gaming & Entertainment to power the latter's mobile sportsbook for the Fallsview Casino in Niagara Falls, the largest gaming resort facility in Canada. Kambi assisted with retail launches in Arizona and Louisiana as well, and with online launches in Michigan and West Virginia

The company is eyeing further growth in markets that have still yet to launch legal sports betting, such as Ohio.

“Ohio is another state of significant size where Kambi has the potential to partner with multiple operators,” the company said in its second-quarter report. “Kambi recently submitted its license application and has a multichannel sportsbook partnership with local entertainment brand JACK Entertainment, which is currently live in Ohio with a free-to-play sports betting product.”

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