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Kambi Group plc Q1 Report 2020

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Financial summary

  • Revenue amounted to €27.9 (Q1 2019: 21.0) million for the first quarter of 2020, an increase of 33%
  • Operating profit (EBIT) for the first quarter of 2020 was €6.8 (2.6) million, with a margin of 24.5% (12.4%)
  • Profit after Tax amounted to €4.8 (2.0) million for the first quarter of 2020
  • Earnings per share for the first quarter of 2020 were €0.156 (0.066)
  • Cash flow from operating and investing activities (excluding working capital movements) amounted to €4.1 (1.1) million for the first quarter of 2020

Key highlights

  • Strong financial performance with 33% year-on-year rise in Q1 revenue and 27% year-on-year increase in Q1 operator turnover, despite reduced sports schedule from 12 March 2020
  • Average daily operator turnover to 12 March 2020 up 47% on the comparative period in Q1 2019 and up 7% on the comparative period in Q4 2019
  • Multiple partner launches, including taking the first legal sports bets in the US states of Illinois and Michigan, further demonstrating Kambi’s regulatory and operational excellence

“The coronavirus pandemic is having a major impact on people’s lives and livelihoods and represents a global challenge of the like we have never faced before. Industries of all kinds have been affected and interrupted, with our own sports betting industry no exception. 

The sports calendar has been stripped bare across the world, with major leagues and events being cancelled or postponed, quite rightly, until safety can be guaranteed. And while I have no doubt sports will return, the current situation has understandably led to a reduction in our revenues, although our teams have done a wonderful job to stem the flow and ensure our partners have a good product to sell. In the final weeks of Q1 and early Q2, we have been running at approximately 25-30% of previous levels in Q1, despite our increasingly material retail business being all but closed.

Despite the much lighter sporting calendar during the latter weeks of the first quarter, Kambi posted strong growth numbers. Operator turnover for the period was up 27% while our revenue increased by a third to €27.9m. EBIT was €6.8m, and we ended Q1 with a cash balance of €46.3m, a sum which will help us withstand the worst-case scenario: an extended period without major sports.

It’s worth highlighting the momentum we had built before the pandemic began to make its presence felt on the sporting calendar. Up to and including 12 March, Kambi’s average daily operator turnover in Q1 was up 47% on the respective period in Q1 2019, and on track to eclipse our record operator turnover of the previous quarter, with it ahead 7% on the comparative period in Q4 2019, despite fewer American football fixtures due to the season’s end.

Furthermore, on 9 and 11 March we processed the first legal bets in the states of Illinois and Michigan respectively. This continued our fantastic performance of getting partners to market quickly with a high quality and compliant sports betting service. To illustrate, Kambi is now active in 10 US states, achieving market firsts on eight occasions. In addition, we recently received our licence for the state of Colorado, where we expect to go live soon.

As announced earlier this month, we introduced a major cost saving programme, to which our staff have readily adapted. I must thank our people for the resilience they have shown during this difficult period. I feel proud of their commitment to our partners to deliver a quality service under the circumstances.

We owe it to our all our employees, partners and investors to ensure we are in the strongest position possible to pick up where we left off when sports do resume, and we enter what promises to be a prolonged period of busy sporting action. I’m confident the cost saving measures we’ve introduced in recent weeks, our strong balance sheet, and the flexibility we have retained to be back running at 100% capacity almost immediately, will ensure we are able to do so, alongside our fantastic partners.

So even though our momentum has been slowed by the unfortunate events of recent months, the decisions we have taken see us well placed to move through the gears as soon as the virus is under control and major sports return. There are positive signs some leagues and tours may resume before or during the summer, albeit behind closed doors, and when they do, we’ll be ready.”

You are invited to participate in a report presentation at 10.45 (CEST) with Kambi Group plc’s CEO Kristian Nylén and CFO David Kenyon. The presentation will be held in English via a telephone conference and can also be accessed via an audiocast using the link below.

Questions can be asked on the telephone conference or sent via the audiocast link. Please see details in the link below:

https://financialhearings.com/event/12433

Numbers for participation in the telephone conference:

Dial-in number SE: +46850558369 UK: +443333009262 US: +18338230589

Link to the audiocast: https://tv.streamfabriken.com/kambi-group-q1-2020

Link to report page: https://www.kambi.com/investors/financial-reports-and-presentations/quarterly-reports

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Casino Content

ICONIC21 launches Football Cup-branded casino games and debut network tournament

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ICONIC21 has rolled out three limited-edition Football Cup-branded casino games and launched its first network tournament, ICONIC Showdown Football Cup, running from 9th of July to 19th of July.

The new titles are Football Cup Roulette, Football Cup Blackjack 360, and Football Cup Gravity Blackjack. ICONIC21 said the releases showcase different customisation approaches, including green screen production for the roulette environment and an updated visual rebrand for its RNG blackjack table.

For Football Cup Gravity Blackjack, ICONIC21 said it used its latest LED technology and applied the Gravity Series multiplier mechanic, with a custom felt, a football gate, and bespoke 3D-printed decorations.

Alongside the three new games, ICONIC21 pointed to its previously launched slot Soccer World Championship, plus The Kickoff and Top Card, which it said received football-season branding and UI/UX updates.

The ICONIC Showdown Football Cup tournament covers 11 games in total and is positioned around the quarter finals, semi-finals and final period. ICONIC21 said 1,000 winners will share a €50,000 prize pool, and operators can enroll via their account manager or by contacting the company directly.

Edvardas Sadovskis, Chief Product Officer at ICONIC21, said:

“What I’m most proud of with this project is the turnaround. We built three fully branded, technically distinct games, enhanced existing ones with promotional branding, and launched our first-ever network tournament around them, all timed to coincide with peak player interest and traffic.

That kind of speed doesn’t happen by accident, it reflects how this team works. ICONIC Showdown is a meaningful first step for us as a provider, and launching it during the Football Cup, with this much energy around the game, feels like the right way to do it. We’re genuinely excited to see how the leaderboard shapes up and even more excited for the finals.”

The post ICONIC21 launches Football Cup-branded casino games and debut network tournament appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Brand Ambassador

Ronaldinho visits CreedRoomz Yerevan studio to front Marble Cup and Kickoff Roulette

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CreedRoomz has brought footballer Ronaldinho to its headquarters in Yerevan, where the company filmed an “exclusive interview” with the former player in connection with two new live casino game shows, Marble Cup and Kickoff Roulette. CreedRoomz said Ronaldinho is the global ambassador for both titles.

In the interview, Ronaldinho said: “For me, it’s a great joy to be a part of this partnership. Since arriving here at the office, everyone has treated me with great affection. I already feel at home, very happy.” Asked to choose between the two games, he added: “Honestly, it’s difficult to choose one, both are wonderful, I loved them, so it’s very difficult to choose one, I think everyone will really like them, I think the whole world will really enjoy them.”

Ronaldinho also described his first impressions of the studio and gameplay: “I was surprised and very happy, everything is very beautiful, everything is very innovative, so I believe that’s why everyone will really like them, so I’m looking forward to everyone starting to enjoy them a lot.”

On why CreedRoomz expects the titles to gain traction, he said: “These are different games. I think that will attract attention, the fact that football is a global passion also helps, so I believe everyone will like it for those reasons.. and for the innovation of everything that is happening.”

CreedRoomz linked the interview to upcoming “World Cup and R10 Tournaments,” with Ronaldinho closing by telling fans: “A message of gratitude for the continued affection. I’m very happy and excited. for the next competitions for the next games, the games are all ready, I hope everyone enjoys them and everyone be very happy and have good times together.”

The post Ronaldinho visits CreedRoomz Yerevan studio to front Marble Cup and Kickoff Roulette appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Gamification

Soft2Bet launches MEGA Shoot World Cup gamification engine

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Soft2Bet has launched MEGA Shoot, a football-themed gamification engine designed around the 2026 FIFA World Cup, aimed at helping sportsbook operators retain players during the tournament.

The product will be deployed across selected Soft2Bet brands including Betinia, Swiper, Campobet, ToonieBet and Elabet, with availability spanning markets including Denmark, Greece, Mexico, New Jersey, Ontario, Romania, and the rest of Canada, according to the company.

MEGA Shoot uses a player-versus-player best-of-five penalty shootout format. Players alternate between striker and goalkeeper, with the striker selecting where to shoot and the goalkeeper selecting where to defend. Each round resolves as a goal or a save before roles switch.

Soft2Bet said early internal results show 31.9% engagement among active players across selected brands, with 71.2% of MEGA Shoot players going on to play a second match. The company also claims a 13.5% player retention uplift.

Yoel Zuckerberg, Chief Product Officer at Soft2Bet, said: “The World Cup runs from 11 June to 19 July, so retention has to work across the full tournament calendar. MEGA Shoot gives operators a football game that players can understand quickly, with head-to-head competition tied to the sport they already follow. With almost 32% engagement among active players and about 71% converting into a second match, the early data shows how tournament-led gamification can strengthen sportsbook engagement during major football events.”

The post Soft2Bet launches MEGA Shoot World Cup gamification engine appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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