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Kambi Group plc Q4 Report 2021

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Financial summary

  • Revenue amounted to €34.9 (Q4 2020: 46.9) million for the fourth quarter of 2021, a decrease of 26%, and €162.4 (2020: 117.7) million for the period January to December, an increase of 38%
  • Operating profit (EBIT) for the fourth quarter of 2021 was €7.1 (22.2) million, at a margin of 20.2% (47.3%), and €57.0 (32.2) million, at a margin of 35.1% (27.4%) for the period January to December 2021
  • Profit after tax amounted to €6.1 (17.3) million for the fourth quarter of 2021 and €46.4 (24.1) million for the period January to December 2021
  • Earnings per share for the fourth quarter of 2021 were €0.198 (0.558) and €1.501 (0.781) for the period January to December 2021
  • Cash flow from operating and investing activities (excluding working capital movements and acquisitions) amounted to €4.8 (20.5) million for the fourth quarter of 2021 and €44.6 (28.7) million for the period January to December 2021
  • The 2022 AGM will be held on 17 May 2022. The Board proposes that no dividend is paid out.

Key highlights

  • Robust financial performance driven by market expansion and strong underlying network growth. When adjusting for the migration of 888 and DraftKings, and the impact from regulation in the Netherlands, operator turnover was up 38%
  • Received a mobile platform licence in New York, the most populous US state to regulate online sports betting thus far, and subsequently went live in Q1 2022
  • Expanded US partner network with the signings of omni-channel operator Affinity Interactive and tribal operators Desert Diamond Casinos and Saginaw Chippewa Gaming Enterprises
  • Completed 38 launches, including three additional US states – Connecticut, Louisiana and Maryland – and with new partners in Australia, the Bahamas and the Netherlands
  • Following close of quarter, extended long-term partnership with Kindred Group until 2026 and have ability to repay convertible bond held by Kindred

“The momentum we built in Q3 continued into Q4, helping us finish the year in fine fashion. This positivity has continued into the new year, most notably having recently extended our partnership with Kindred Group, which now runs for the next five years up until the end of 2026, providing us with additional financial strength. Separately, we also have the ability to repay the convertible bond held by Kindred, which when paid at a time of our discretion will provide us with complete freedom to make the right strategic decisions for Kambi’s future, which has never looked brighter.

Looking back at Q4, growth from the Americas continued to be a key driver of our performance. The Americas region was responsible for 58% of operator GGR and is set to increase further with additional markets to regulate and go live this year across Canada, the US, and South America.

One of the key quarterly highlights was the receipt of our licence in New York State, which since launching a few weeks ago has quickly grown to become the largest market in the country. Not only did Kambi secure one of the few licences on offer in New York, the bid we led as a primary applicant also achieved the highest score from the regulator following a competitive application process. Such an achievement is a real testament to Kambi’s reputation in the US and the quality, integrity, and reliability of our sports betting technology.

We signed three new partners in the US during Q4, including a multi-state partnership with US omni-channel operator Affinity Interactive, which operates casinos in three states and the Daily Racing Form, an iconic horse racing news brand. We followed these signings up after the quarter with a multi-state deal with MaximBet and a partnership in Canada with NorthStar Gaming, which is partnered with Torstar Corporation, one of the country’s largest news organisations.

In addition to North America, we made significant progress in Argentina, going live in both Buenos Aires City and Buenos Aires Province, while we also launched new partners in Australia and the Bahamas. Furthermore, in Europe we launched BetCity and JVH in the re-regulated Netherlands market and have been buoyed by the early performance. We are excited by prospects in the Netherlands, particularly once additional partners are awarded their licence in the coming months.

In summary, Q4 concluded a transformative year for Kambi and as we move into 2022, I am confident the business has never been better positioned for the future. The prospect of further regulation and additional partner signings across the globe is positive and we are firmly established as the go-to provider for the global sports betting market. I look forward to building on our successes this year and beyond to the benefit of both our partners and shareholders alike.”

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Sebastian Jarosch Becomes Head of AI at Casinos Groups

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Sebastian Jarosch is no longer solely the founder and managing director of Casino Groups as he is also taking on the role of Head of AI, at least on an interim basis. This personnel decision marks a conscious step towards closer integration of corporate management and technological responsibility.

In future, Jarosch will not only be responsible for the strategic direction of the company, but also for the further development of the AI systems that already form a central part of the product landscape. Casino Groups is one of the best-known platforms, which has been using and continuously developing an AI-supported rating system for online casinos for some time.

The decision to anchor the role of Head of AI directly at management level was a conscious one. Artificial intelligence now influences almost all areas of the affiliate business, from content structures and data analysis to regulatory documentation and product logic. Such a development requires decisions that bring together economic objectives, technological possibilities and legal frameworks.

Sebastian Jarosch brings this perspective from years of experience in the iGaming sector. As an entrepreneur, he is familiar with economic dependencies as well as the challenges of increasing regulation. The additional responsibility in the AI area makes it possible to set technological courses more quickly, define priorities more clearly and establish innovation as an integral part of corporate management.

The new role of Head of AI fits in perfectly with current developments in the iGaming market. Increasing regulatory requirements, rising acquisition and content costs, and the growing influence of AI-powered search systems are changing the economic fundamentals of the affiliate business. Visibility is no longer achieved solely through reach, but through authority, consistency and verifiable quality.

With this appointment, Casino Groups is sending a clear signal to the outside world. Affiliate companies are increasingly being valued like media or technology companies. Partners and investors are placing greater emphasis on compliance, data competence and sustainable product development. The bundling of management and AI responsibility strengthens the company’s credibility in these areas.

At the same time, Casinos Groups is positioning itself as a player that does not delegate innovation, but actively drives it forward. The interim nature of the role creates space for further development and adaptation without diluting the strategic ambition. For the industry as a whole, this step underlines that AI expertise has arrived at the management level.

The role of Head of AI forms the organisational foundation for this development. It ensures that technological innovation, editorial standards and economic objectives are interlinked. Casino Groups is thus pursuing a clear line: technology as a tool, people as an authority and quality as a connecting element.

The post Sebastian Jarosch Becomes Head of AI at Casinos Groups appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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CONOR DURNIN

THE UNIT ANNOUNCES APPOINTMENT OF CO-FOUNDER CONOR DURNIN TO LEADERSHIP TEAM

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The Unit, the leader in product design and development for iGaming and sports betting, has announced the appointment of Conor Durnin to its leadership team.

Durnin, who co-founded The Unit in 2018, played a foundational role in the company’s early vision and direction. His appointment marks the first time he has taken on an active position within the business, as The Unit continues to scale its work with operators, platforms, and suppliers in the global iGaming and betting sector.

In his role, Durnin will focus on strengthening The Unit’s product strategy expertise, supporting complex client engagements, and helping guide the company’s next phase of growth as demand increases for outsourced development of differentiated and innovative betting and gaming products.

“From the outset, The Unit has set out to raise the standard for outsourced product development in betting,” said Durnin. “Stepping into this role allows me to focus on supporting the team as we help our partners build scalable, world-class products.”

Having previously held senior roles at brands including Boylesports, Grand Parade and SportCaller, Durnin brings extensive experience in product leadership, engineering, and delivery, with a reputation for bridging commercial objectives and technical execution. His approach aligns closely with The Unit’s focus on building world-class products that prioritise user experience and long-term sustainability.

“The Unit was founded to challenge conventional thinking around betting and gaming product design, and Conor will play a pivotal part in this going forward,” said Paddy Casey, Co-founder at The Unit. “As the business continues to flourish, adding Conor is a natural step and reflects the ongoing pace of expansion at The Unit.”

Durnin’s arrival comes as The Unit continues to expand its footprint across sports betting and iGaming, working with clients on outsourcing options, product development, UX/UI, platform architecture, and industry-leading technical design.

With offices in Ireland, Moldova, Gibraltar, and a US hub in New York, The Unit has an unflinching commitment to becoming the partner of choice throughout the industry. In addition to its broad-ranging nearshore product development, the team now boasts a strong track record of building world-class products for the sports betting and iGaming sector over the last decade.

The post THE UNIT ANNOUNCES APPOINTMENT OF CO-FOUNDER CONOR DURNIN TO LEADERSHIP TEAM appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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Compliance Updates

St8 Secures Sweden B2B Licence, Adding Another Regulated Market

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Casino games aggregator St8 is poised to expand into another significant regulated market following the receipt of a B2B supplier license from Sweden’s Gambling Authority, Spelinspektionen.

This indicates that St8 can now offer its aggregator technology to operators licensed in Sweden for the first time.

These operators obtain access to an advanced platform renowned for achieving seamless integrations within days through a single API.

Vladimir Negine, founder and CEO at St8, said: “Being awarded a B2B licence by Spelinspektionen underlines the strength of St8’s technology and compliance-first approach. Sweden is one of Europe’s most respected regulated iGaming markets, and we are excited to now be able to support licensed operators there with our next-generation aggregation platform.

“Our focus remains firmly on expanding in regulated jurisdictions, and adding Sweden further strengthens St8’s position as a trusted supplier to operators in leading global markets.”

Spelinspektionen is recognized for upholding some of the strictest player protection standards in iGaming,

St8 has quickly grown into several prominent regulated markets in recent months. In October, it received a supplier license in Ontario, and in July it obtained a B2B license in the United Kingdom.

The post St8 Secures Sweden B2B Licence, Adding Another Regulated Market appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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