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Kambi Group plc Q1 Report 2021

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Financial summary

  • Revenue amounted to €43.2 (Q1 2020: 27.9) million for the first quarter of 2021, an increase of 55%
  • Operating profit (EBIT) for the first quarter of 2021 was €18.7 (6.8) million, an increase of 173%, at a margin of 43.2% (24.5%)
  • Profit after tax amounted to €15.1 (4.8) million for the first quarter of 2021
  • Earnings per share for the first quarter of 2021 were €0.487 (0.156)
  • Cash flow from operating and investing activities (excluding working capital movements) amounted to €16.5 (4.1) million for the first quarter of 2021

Key highlights

  • Operator turnover index exceeded 1,000 mark for first time, equating to a x10 growth since Kambi’s first quarter post-listing in 2014
  • Strong revenue growth of 55% year-on-year at an operator trading margin of 8.5%
  • Continued US expansion with launches across a number of jurisdictions including Michigan, Illinois, Virginia and Arkansas – the latter became the 14th state in which Kambi provides regulated sports betting

“I’m pleased to report the exceptional performance we produced during the latter part of last year has continued into 2021, with significant growth across a range of KPIs including operator turnover, revenue and operating margin. We also continued our impressive commercial momentum with new partner signings and extensions in key target markets. The operator turnover index surpassed 1,000 for the first time after a record quarter which saw operator turnover more than double year-on-year, with the caveat of the final fortnight of Q1 2020 impacted by COVID-19. This strong performance was driven by a busy sporting calendar, including the end of the NFL season and the March Madness college basketball tournament, and more than compensated for the planned migration of a large proportion of 888’s business off the Kambi sportsbook in January.

Revenue growth was also exceptionally strong at 55%, with operator trading margin of 8.5% for the quarter. The business was once again able to demonstrate its scalability with an operating margin of 43%, which was particularly pleasing to see in a quarter played out in an environment more reflective of the pre-pandemic landscape, as we transition back to something more akin to normality.

From a commercial perspective, and as detailed in our previous report, we signed new partnerships with Racing & Wagering Western Australia (RWWA) and Casino Magic. Within weeks of signing with Casino Magic, our sportsbook was live in Neuquén, Argentina, strengthening our position in the promising South American market, while we continue to work with RWWA on the transition of its existing business to Kambi from its current provider. In addition to signing two new partners, it was great to strengthen our partnership with Napoleon Sports & Casino, and we look forward to building further on this long-term relationship in the years to come.

As ever, the quarter saw Kambi continue to support the expansion of partners across the globe, averaging a partner launch every week throughout the reporting period. In addition to the launch of Casino Magic, we supported US-facing partners in states including Michigan, Virginia, Illinois and Arkansas, with the latter becoming the 14th state in which Kambi is live and generating revenue. Although I’ve said it before, it’s worth repeating our market-leading excellence and reliability in the areas of integrations and launches, often working closely with regulators to ensure our partners are first or among the first to go live.

Regulation in the US continues to move at pace, with progress seen in a variety of states in recent weeks and months, perhaps most notably in New York, where the state has committed to adding online sports betting to its existing retail market. As the first company to process a regulated sports bet in New York, we’re of course monitoring the developing situation there closely and look forward to the publication of further details concerning the licensing framework in due course.

In the meantime, our teams are busy preparing for what will be a special summer of sports, with major events such as the delayed Euro 2020, Copa America and Olympic Games, as well as the return of annual summer tournaments including Wimbledon and The Open. In addition, this year should see a full MLB season played out, with a high volume of games to be played throughout the summer months. As always, our partners will have a first class offering across all sports and competitions, and as sports fans we have a lot to look forward to.”

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Compliance Updates

Merkur Group Strengthens Global Compliance Strategy

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Under the theme “Perspectives,” a total of 43 compliance staff members from the Merkur Group across various countries gathered from 30 June to 1 July to further develop compliance processes in a sustainable manner. Colleagues from Germany, Spain, England, Malta, Australia and the US traveled to the two-day meeting at Benkhausen Castle, the in-house training centre of the Merkur Group. The workshop set the stage with expert presentations on global and digital topics such as cybersecurity, risk management and artificial intelligence. A panel discussion featuring representatives from various international companies within the Merkur Group, as well as a digital quiz, rounded out the programme.

In keeping with its guiding principle, the workshop focused on sharing experiences, fostering global networking and providing impetus for the further development of compliance processes. Because informal exchanges are also key to close cooperation, the evening programme created a relaxed atmosphere and gave participants the opportunity to continue their conversations, make new connections, and further strengthen team spirit across company and national boundaries.

“The ideas and diverse perspectives gained during the workshop will now be incorporated into our day-to-day work and help us to continuously improve collaboration and existing processes,” said Ludwig Beckmann, Chief Compliance Officer of the Merkur Group.

The concluding feedback session also highlighted just how valuable the international exchange is. The term “collaboration” came up particularly often, a clear indication of how highly the participants value working closely together within the international compliance network.

The post Merkur Group Strengthens Global Compliance Strategy appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Anne Marie Caulfield

GRAI Launches New Campaign Helping Parents to Spot the Signs of Underage Gambling

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The Gambling Regulatory Authority of Ireland (GRAI) is encouraging parents and guardians to be alert to the signs of gambling among young people and to intervene early to prevent gambling harm.

The signs of gambling aren’t always visible, the GRAI in partnership with the Health Service Executive Addiction Services have developed dedicated advice on www.grai.ie to equip families with the knowledge to recognise the signs, advice on how to start the conversation with their children about gambling, and where to seek help if required.

To support the guidance, the GRAI has launched a national public awareness campaign across video on demand, radio, digital audio, and social media platforms, bringing this message directly to families across Ireland.

With the lines between entertainment and gambling increasingly blurred, especially online, what may look like harmless fun can still involve risk, money and chance in ways that affect young developing brains. Research commissioned by the GRAI and conducted by the Economic and Social Research Institute (ESRI) found that children who gamble are twice as likely to develop a gambling problem as adults.

Anne Marie Caulfield, CEO of the GRAI said: “We have launched this campaign to help parents start an important conversation about the risks of underage gambling. Children and young people are among the most at-risk members of Irish society when it comes to gambling exposure and harm. Children’s brains are still developing the judgement and impulse-control systems used to weigh up risk, which makes gambling appealing to them.

“With online gambling available at any time of the day, it is easy for the warning signs to be hidden. The guidance the GRAI developed with the HSE Addiction Services sets out some of the key behavioural signs to look out for in your child.”

The post GRAI Launches New Campaign Helping Parents to Spot the Signs of Underage Gambling appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Amusnet

Amusnet Launches VIP LIVE Roulette, Bringing a Refined Experience to Live Casino Players

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Amusnet has launched VIP LIVE Roulette, a new addition to its Live Casino portfolio, offering a premium European roulette experience designed for players who prefer higher stakes, greater comfort and a sophisticated gaming environment.

Created for those who appreciate a more considered approach to live roulette, VIP LIVE Roulette combines elegant studio production with elevated table limits and an extended betting window. The additional betting time allows players to place larger, more strategic wagers at a comfortable pace, creating a smoother and more engaging experience without changing the familiar flow of the game.

Built on the classic European roulette format, the game enhances traditional gameplay with a range of intuitive features that support both convenience and strategic play. Players can personalise their sessions using Favourite & Special Bets, quickly repeat previous wagers with Auto-Rebet and follow live Statistics to inform their decisions throughout the game.

Set in a dedicated VIP studio, the game delivers a polished live presentation with professional dealers, high-definition streaming and a clean, modern environment that recreates the atmosphere of an exclusive casino floor. Every element has been designed to combine the authenticity of live roulette with the expectations of today’s premium player segment.

VIP LIVE Roulette joins Amusnet’s growing Live Casino portfolio, further strengthening the company’s offering with a title that balances timeless gameplay with contemporary player preferences. As operators continue to expand their live casino proposition, the game provides an opportunity to appeal to high-value audiences looking for an elevated roulette experience that combines premium presentation, seamless gameplay and greater flexibility at the table.

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Pick again the lucky numbers for the last spins.

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The post Amusnet Launches VIP LIVE Roulette, Bringing a Refined Experience to Live Casino Players appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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