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Kambi Group plc Q1 Report 2021

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
- Strengthened global network through new partnerships with Racing & Wagering Western Australia and Casino Magic, extended partnership with Napoleon Sports & Casino
“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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Balkans
SYNOT Enters the Bulgarian Market

SYNOT Group has successfully realized its first installation of land-based products in Bulgaria. The popular MAGIC BALL LINK jackpot system has been launched at IMPERIA Gaming Clubs in the city of Plovdiv, with three installations (a total of 12 Eclipse FL-32 machines) at three different locations.
“I would like to thank to IMPERIA Gaming Clubs for the trust and the opportunity to show the best performing products of SYNOT to the player’s audience in Bulgaria. I strongly believe that this is the beginning of a fruitful partnership which will grow in time,” said Stanislav Stanev, International Business Development Director of SYNOT Group.
MAGIC BALL LINK is a progressive jackpot system that has already gained popularity in several markets due to its attractiveness and performance. Bulgarian players can now enjoy eight exciting linked games that combine a entertaining gaming experience with the potential for significant winnings. This installation follows shortly after SYNOT Group recently obtained a license for the Bulgarian market, paving the way for further growth and expansion in the region.
“We are happy to welcome SYNOT slot machines on our floors, and we really believe that SYNOT products will supplement our diverse offering to the players and will become an integral part of all our locations,” said Gavril Chetrafilov, Owner of IMPERIA Gaming Clubs.
The post SYNOT Enters the Bulgarian Market appeared first on European Gaming Industry News.
Compliance Updates
UKGC Publishes Update on Financial Risk Assessments Pilot

The UK Gambling Commission (UKGC) has published a further update on the ongoing pilot of financial risk assessments.
Written by the Director of Major Policy Projects who is leading the pilot, Helen Rhodes, the update provides information on Stage two of the pilot and the issues being explored in the final stages of the pilot.
“Financial risk assessments are a proposed way of identifying high-spending remote gambling customers who may be in financial difficulties, in order to help support them,” the Commission’s latest update on the finance risk check pilot reads.
“This is not the same as ‘affordability checks’ – the Commission does not have any regulatory requirements for affordability checks and is not proposing any. Financial risk assessments would be a much more targeted way of identifying potentially financially vulnerable customers. They would not affect a customer’s credit score if they were introduced in the future.”
Key Points Covered by the Update
The UKGC says that the pilot has given it a better understanding about the financial risk profile who met the thresholds. These customers were found to be between twice and four times more likely to have a debt management programme than those who didn’t meet the thresholds, and more between twice and five times more likely to have a default in the last 12 months.
The most remarkable is the fact that the data has reinforced the UKGC’s view that the finance risk checks will be as non-intrusive and frictionless as possible. According to the UKGC’s estimations, only 0.1% of customers would be subject to a non-frictionless assessment.
It also says that 95% of assessments carried out in stage one were possible in a frictionless matter, with this figure rising to 97% in stage two, where the total number of risk assessments carried out across three credit reference agencies rose from 860,000 to 1.7 million.
The analysis phase of stage three of the pilot is expected to continue into the summer, after which the UKGC will move into stage four.
NatCen is continuing to work as the UKGC’s evaluation partner on this pilot and post-pilot analysis work.
Director of Major Policy Projects, Helen Rhodes, said: “These further findings from the pilot have helped us understand the extent that assessments could be conducted in a frictionless manner.
“Building on our staged approach to the pilot, we will now further explore data consistency across credit reference agencies, as well as how to support operators to identify the severity of financial difficulties that a customer may be experiencing and how they could support these customers.”
The post UKGC Publishes Update on Financial Risk Assessments Pilot appeared first on European Gaming Industry News.
Compliance Updates
Irish Politician Philip McGuigan Calls for Urgent Action on Gambling Harm Treatment

Sinn Féin MLA Philip McGuigan, Chair of The All Party Group on Reducing Harm Related to Gambling, has called for urgent government action following the publication of a report presenting the findings from the 2024 Gambling Prevalence Survey, commissioned by Department for Communities, which reveals alarming levels of gambling-related harm in the north.
Speaking in the Assembly, McGuigan said what is perhaps most alarming from the survey’s findings, is the low number of people seeking help. Only 1% of those who gamble reported accessing support or information from gambling or mental health services.
He said: “The Minister of Health must act without delay to commission dedicated gambling treatment services. With existing addiction services already under pressure, additional funding is essential. The findings of this survey point to a serious gap in provision for addiction treatment in the north. The need is clearly there, but people aren’t getting the help they need.”
According to the “Prevalence of Gambling in Northern Ireland 2024” report, 3% of the population are experiencing severe gambling-related harms, while a further 10% are considered low or moderate risk gamblers. Shockingly, approximately one in seven adults who gambled in the past year admitted to betting more than they could afford to lose. Additionally, one in eight reported needing to gamble increasing amounts to achieve the same level of excitement, and nearly one in 12 said gambling had caused health problems such as stress and anxiety.
McGuigan said: “These figures are deeply concerning and underscore the serious social and public health implications of gambling addiction. This isn’t just about individuals losing money; it’s about broken families, damaged relationships, and communities struggling with the fallout of gambling harms.”
The survey also found that 10% of people affected by gambling had experienced the breakdown of a close relationship due to someone’s gambling, highlighting the wider ripple effects of the issue.
To address the funding gap, McGuigan is also calling on the Minister for Communities to bring forward the promised levy on land-based gambling operators without delay.
“Calling the Minister for Communities to introduce a levy is a fair and necessary step. The industry profiting from gambling must contribute to the prevention and treatment of gambling harm,” he said.
McGuigan also criticised the British Government for excluding Northern Ireland from the proceeds of the statutory levy on gambling operators introduced in Britain on 6 April. This levy is intended to fund research, prevention and treatment of gambling-related harm.
“Online gambling operators licensed by Britain’s Gambling Commission are freely advertising and profiting here in the North. Yet, our population is completely excluded from the financial benefits of the statutory gambling levy on these operators. That is unacceptable. Executive Ministers must demand that the North receives its fair share of this funding,” McGuigan said.
The survey further revealed that 66% of respondents believe there are too many gambling advertisements, and 71% support a watershed for gambling ads on TV and radio.
McGuigan is now urging the Secretary of State for Culture, Media and Sport, Lisa Nandy MP, to use her powers to implement tighter advertising restrictions, including a TV and radio watershed to limit exposure to gambling content during peak viewing times.
“The public clearly wants action. The evidence is there. We must act now to protect individuals and families from the devastating consequences of gambling addiction,” he said.
The post Irish Politician Philip McGuigan Calls for Urgent Action on Gambling Harm Treatment appeared first on European Gaming Industry News.
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