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Kambi Group plc Q3 Report 2021
Financial summary
- Revenue amounted to €41.6 (Q3 2020: 28.1) million for the third quarter of 2021 and €127.5 (2020: 70.8) million for the period January to September, an increase of 48% and 80% respectively
- Operating profit (EBIT) for the third quarter of 2021 was €14.7 (6.5) million, at a margin of 35.4% (23.3%), and €50.0 (10.0) million, at a margin of 39.2% (14.2%) for the period January to September
- Profit after tax amounted to €11.9 (5.1) million for the third quarter of 2021 and €40.3 (6.8) million for the period January to September
- Earnings per share for the third quarter of 2021 were €0.384 (0.164) and €1.302 (0.220) for the period January to September
- Cash flow from operating and investing activities (excluding working capital movements and acquisitions) amounted to €11.9 (6.9) million for the third quarter of 2021 and €39.9 (8.2) million for the period January to September
Key highlights
- Group revenue of €41.6 million, a 48% year-on-year increase, taking revenue for the first nine months of the year to €127.5 million, eclipsing the total for the whole of 2020
- Acquired esports data and odds provider Abios, strengthening Kambi’s technology capability and transforming Kambi into a leading supplier of esports products and services
- Expanded partner network with signings of Island Luck in The Bahamas and BetCity in the Netherlands
- Continued expansion with on average one partner launch per week, including going live online on day one in Arizona, the 15th state in which Kambi has launched
“I’m pleased to report another excellent quarter for Kambi, with strong financial results against tough 2020 comparables, which is a testament to our robust business model and the hard work of our staff across the world. Kambi Q3 revenue was up 48% year-on-year, operating margin was once again strong at 35% and we continue to be highly cash generative. Excluding DraftKings, operator turnover was up 10% year-on-year, highlighting the underlying growth in the business.
We had a strong start to the new NFL season, which kicked off on 9 September, with our platform outperforming the competition and our market-leading Bet Builder product engaging a large number of bettors and returning higher average operator trading margin. Furthermore, revenue in Q3 was boosted by our continued US expansion, including day one launches in Arizona, the 15th state in which Kambi has launched. In total, Kambi completed approximately one launch per week on average throughout the quarter.
As we saw in Q3, M&A remains an ongoing trend in this industry, with the number of transactions featuring sports betting and gaming assets on the rise due to a growing appetite to invest in companies with highly sought-after technology. This illustrates the inherent value in proven businesses and supports a strong belief in future growth prospects in regulated markets across the world.
On the subject of M&A, I was delighted to announce our acquisition of esports data and odds provider Abios during the quarter. We believe Abios is a great fit for Kambi, and its technology and expertise will enable us to create a first-class esports product that will diversify our revenue streams by capitalising on the opportunities presented by this fast-growing vertical. The acquisition is also in line with our longer-term strategy to further modularise our platform and, with a strong balance sheet, we remain in a good position to explore additional acquisition opportunities in the future.
As ever, Kambi is committed to creating the world’s leading sportsbook and we have spent more than a decade focused exclusively on the sports betting vertical, developing a core product that is near impossible to replicate. Whether it’s our ability to offer a great betting experience, being ahead of the curve in terms of regulation and compliance or having a wealth of network data at hand to effectively power the engine, Kambi has both the technology and expertise in place to deliver long-term success for our partners.
Of course, during the quarter we learned of Penn National Gaming’s decision to acquire theScore, a Canadian sports media company which owns a player account management system and plans to develop its own sportsbook. It’s incredibly difficult, as well as costly, to build, maintain, and continue to develop a first-class sportsbook, as we’ve seen with unsuccessful efforts of others in the past. In the meantime, we’ll continue to support their growth with our fantastic platform and service we have built over many years, which remains very much of interest to our growing list of prospective partners.
In summary, we’ve performed well, and the future looks bright. We currently have a sales pipeline as strong and varied as I’ve known it. As the global trend of regulation continues, we are in a great position to capitalise on future opportunities as and when they arise, and we have announced the implementation of a share buyback scheme.
Many of us at Kambi have been in this industry for more than two decades, during which time we’ve seen the sports betting market change markedly. This change is reflected in the evolution of Kambi, where we have built a business that thrives in regulated market conditions, grown to become a global leader, and partnered with major brands across the globe, many entering the space for the first time. This experience means we know what it takes to succeed and I am therefore excited by what the coming years hold for Kambi.”
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Blueprint Gaming
Blueprint Gaming releases Wolf Fury Fire Blitz slot
New title adds Fire Spins and Blitz Spins bonuses plus Standard, Super and Ultra Power Play modes at 5x, 10x and 20x stake.
Blueprint Gaming has released a new slot, Wolf Fury Fire Blitz, built around an “evolving Fire Blitz mechanic” and two bonus paths: Fire Spins and Blitz Spins.
The game uses a Fire Blitz logo above the reels as a meter. In the base game and Power Play, the supplier said every Cash and Wolf symbol contributes to the meter, with boosts able to add extra symbols and “guarantees either Fire Spins or Blitz Spins.”
Fire Spins triggers when six or more Cash symbols land in view. Each reel position spins independently to add more Cash or Wolf symbols, with new symbols resetting a three-spin counter and locking in place. Blueprint said the Wolf can land on the centre reel to collect all Cash symbols in view, then collect additional prizes that land for the remainder of the feature.
Blitz Spins activates when a Wolf symbol lands on reel three alongside Cash symbols on two adjacent reels. During the bonus, the Wolf collects every Cash symbol that lands before the reels respin, and additional Wolf symbols can lock in place, with up to three collectors active at once.
The title also includes Blueprint Gaming’s multi-level Power Play, offering Standard, Super or Ultra modes at 5x, 10x or 20x the base stake. In these modes, the company said only Cash and Wolf symbols appear on the reels.
Jo Purvis, Director of Marketing, PR and Events at Blueprint Gaming
, said: “Wolf Fury Fire Blitz combines several of our most engaging mechanics into a fast-paced experience that offers players frequent feature opportunities and exciting collection gameplay. The Fire Blitz mechanic creates anticipation throughout every session, while the dual bonus structure ensures plenty of variety.
“The addition of our multi-level Power Play further enhances the experience by giving players greater control over how they engage with the game, reinforcing our commitment to delivering innovative, feature-rich content that performs across regulated markets worldwide.”
The post Blueprint Gaming releases Wolf Fury Fire Blitz slot appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.
4 Chili Pots: Hold and Win
Playson releases 4 Chili Pots: Hold and Win with dual bonus modes
Playson has launched 4 Chili Pots: Hold and Win, a new slot built around Hold and Win and Pots mechanics with two bonus modes and jackpots reaching 10,000x.
The game runs on a 5×3 grid and triggers a Hold and Win Bonus Game with Chili Features when red, orange or green Chili Bonus symbols land, combining with enlarged matching chilis above the reels. The chilli colour determines the feature in play: red triggers a Multi Feature that adds multipliers up to 5x; orange triggers a Mystery Feature that can award Mini, Minor or Major jackpot values or a coin value up to 75x; and green triggers a Collect Feature that gathers the value of all symbols in play, including any attached multipliers.
A golden Super Chili Bonus symbol can trigger a Super Bonus Game on an expanded 5×5 grid, with random Multi, Mystery or Collect features, including combinations. During the round, the active Super Chili Feature lands random Chili Bonus symbols until six are present, which then activates a new feature or enhances the current one.
Playson said jackpots can be triggered in both bonus modes. Filling all 15 cells in the classic bonus awards the Grand Jackpot at 3,000x, while filling all 25 cells in the Super Bonus Game awards the Super Jackpot at 10,000x. Skull-themed symbols can also appear in bonus play and transform into red, orange or green Chili Bonus symbols. The title includes two Buy Bonus levels, allowing players to trigger the Bonus Game or Super Bonus Game with one, two or three Chili Features.
Anton Ivannikov, CPO at Playson, said: “Our fiery new title showcases our continued focus on evolving proven mechanics in fresh and exciting ways. By combining two player-favourite features with layered bonus progression, dynamic Chili Features and a Super Bonus Game offering even greater rewards, we have created a title that delivers excitement throughout every stage of play.
“Complemented by its vibrant Mexican fiesta theme and engaging gameplay, we are confident 4 Chili Pots: Hold and Win will prove to be another valuable addition to our partners’ casino offerings.”
The post Playson releases 4 Chili Pots: Hold and Win with dual bonus modes appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.
Compliance Updates
Merkur Group Strengthens Global Compliance Strategy
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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