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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.

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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

BetComply, RiskCherry and White Coral team up to offer go-to-market service

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Compliance consultancy BetComply, independent test lab RiskCherry and legal advisory White Coral have agreed a strategic alliance, meaning the trio can now offer a complete, go-to-market service to igaming suppliers looking to launch their products in new jurisdictions.

The new service was born out of direct feedback from games studios who were struggling with the need to engage multiple advisories and consultancies ahead of new market launches.

By combining forces, BetComply, RiskCherry and White Coral are together able to provide an efficient and seamless experience, as well as a unified conclusion to each project: the relevant licence or certification for the supplier.

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BetComply will cover pre-compliance testing, understanding technical requirements and policy drafting; RiskCherry will handle testing, inspection and certification; and White Coral will provide legal coverage across software agreements, sales contracts and more.

Daniel Brookes, CEO at BetComply, said: “For too long, launching content in new markets was a fragmented and frustrating process for games studios. By teaming up with RiskCherry and White Coral, we’re able to eliminate the guesswork, opacity and many of the hidden costs. This isn’t just streamlining a process; we’re setting a new standard for the industry.”

Mihael Mladenov, COO at RiskCherry, said: “We’re really excited to work alongside BetComply and White Coral on this game-changing service. It brings together three of the most forward-thinking companies in their respective fields, and provides a one-stop-shop for games suppliers.”

Steven Matsell, Managing Partner and Founder at White Coral, said: “White Coral has always been focused on cutting through legal complexity, and alongside BetComply and RiskCherry, we’re now able to offer our services in a way that further simplifies the process for suppliers. This is a major win for any business wanting to complete agreements faster and more cost effectively.”

The post BetComply, RiskCherry and White Coral team up to offer go-to-market service appeared first on European Gaming Industry News.

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Yggdrasil and Boomerang Games offer big bank in Goblin’s Bargain MultiMax™

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Yggdrasil has released Boomerang Games’ (under license to ReelPlay) newest game Goblin’s Bargain MultiMax™, a vault packed with features ready to tempt those looking for the biggest of wins.

The glittering gold belonging to the nefarious mythical creatures is under lock and key unless players can make the most of MultiMax. The popular Game Engagement Mechanic (GEM) sees a multiplier build up on each reel which can be multiplied together, leading to exponentially large wins.

In the base game, every spin may see a symbol appear in the Strike Zone which awards a random power-up to the reels, such as an extra wild, multipliers, or free spins. Three scatter symbols landing in the Strike Zone activate the game’s bonus mode.

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Fortune-hunting mayhem is cranked up in the free spins round where only winning spins count. Here, MultiMax multipliers above each reel do not reset, meaning five different multipliers at once can combine by the end of the feature for huge win potential of up to 15,000x.

Goblin’s Bargain MultiMax is the latest game developed by Boomerang Games, which thanks to its agreement with ReelPlay, can provide standout content across the YGG Masters program. It follows Skylantis 2 Wild Fight as it continues to enjoy the flexibility that its partnerships offer.

The title is powered by GATI, Yggdrasil’s state-of-the-art technology enabling partners to employ the preconfigured, regulation-ready, standardised development toolkit to consistently produce cutting-edge content followed by rapid distribution.

Zoe Bird, Senior Product & Program Manager at Yggdrasil, said: “Goblin’s Bargain MultiMax is another incredible title from Boomerang Games and ReelPlay, making the most of our high-performing GEM to deliver true win potential.

“It’s not only the size of the wins on offer but the routes to achieving them with a host of engaging features packed into a slot that is rich in more ways than one.”

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David Johnson, CEO at ReelPlay, said: “Boomerang Games pack lots of action into their slots. With multiple features on offer combined with their use of MultiMax, Boomerang’s proprietary Strike Zone and cute theme, players are spoilt for choice of fun ways to go after their wins.”

The post Yggdrasil and Boomerang Games offer big bank in Goblin’s Bargain MultiMax™ appeared first on European Gaming Industry News.

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Habanero is out on the prowl in a frosty escapade with latest release Arctic Hunt

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Premium slots and table games provider, Habanero, invites players for an icy adventure in its new title Arctic Hunt, offering expanding wilds with multipliers of up to 50x.

Set against a snowy forest, this 5×3 game hosts a variety of wildlife such as fish, rabbits, deer and beavers as its symbols. Arctic foxes can also appear as wilds and substitute other icons to help form wins.

Regular symbols can land with crystal gems attached which are accumulated in a counter at the top of the board. Collecting seven of these gems triggers expanding wilds in the following spin, where the fox tile expands to cover the entire reel it lands on as well as providing a multiplier of 2x to 50x.

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Three to five snowflake Scatter symbols can land, awarding 10, 20 or 50 free games respectively which can be retriggered to further boost the chances of big win potential.

Arctic Hunt follows recent hits such as Moo Moo Cow and Golden Taj Mahal as the provider continues to bolster its portfolio with high-quality releases.

Commenting on the release, Toni Karapetrov, Head of Corporate Communications at Habanero, said: “Inviting players on a snowy excursion through the wilderness, Arctic Hunt pairs its immersive theme with equally captivating gameplay.

“Allowing players to hunt for an array of animals, including the elusive expanding Wild fox which can boost wins by up to 50x, we’re confident our latest release will continue to drive growth for our partners.”

The post Habanero is out on the prowl in a frosty escapade with latest release Arctic Hunt appeared first on European Gaming Industry News.

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