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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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Costa Rica May Be the World’s Largest Crypto Casinos Hub

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Once an elephant in the room that many preferred to ignore, crypto has matured into a mainstream asset class, growing in acceptance across jurisdictions and industries in every corner of the world. More industries no longer hesitate and feel more comfortable accepting crypto as a payment method or otherwise integrating it into their infrastructure, and iGaming is no exception.

In fact, the industry has witnessed a rapid boom in “crypto casinos,” driven by players seeking stronger privacy, faster processing, and fewer geographic barriers that are impossible to maintain by traditional payment methods.

Becoming one of the fastest-growing iGaming verticals, the use of digital assets allows crypto casinos to benefit from lower transaction fees, faster processing, and faster decision-making cycles from customers not constrained by location restrictions. Nevertheless, their growing popularity does not remove the regulatory uncertainty surrounding the landscape.

Despite the rising popularity of such platforms, the vertical still lacks clarity and instead navigates a fragmented regulatory environment with uneven treatment of crypto across jurisdictions. Entrepreneurs setting up a crypto casino in jurisdictions traditionally favored by traditional gambling operators often discover too late their very harsh treatment of crypto, from costly licensing to rigid compliance demands.

In some cases, regulators indirectly complicate, to the extent possible, crypto integration and the whole future of such platforms, leaving firms navigating unclear and sometimes conflicting requirements from financial and gambling authorities. As such, the real complexity of starting a crypto casino lies not in technology setup or player acquisition but in finding where to establish a business today to operate with legal confidence in tomorrow. In response, a new category of next-generation licensing hubs has emerged, offering more flexible structures, lower costs, and a more friendly approach toward crypto-native business models.

Among flagship options, Costa Rica has gained notable momentum, being widely regarded as a top-tier choice for crypto casino registration, according to legal experts, particularly for entrepreneurs seeking to avoid excessive administrative friction. Reportedly, as most jurisdictions force crypto casinos to secure both gambling and crypto licenses, Costa Rica allows starting with a local entity incorporation and a data processing license, with no other barriers to entry.

The country maintains a business-friendly approach to crypto gaming, enabling play-and-earn projects, decentralized games, and smart contract-based solutions to grow with full confidence under its legal framework. This makes the jurisdiction a perfect fit for startups operating at the intersection of crypto and gaming, integrating crypto payments or other digital asset features into their platform.

While Costa Rica does not keep a publicly accessible register of licensed operators, it would be safe to assume it remains among the most attractive and popular destinations for crypto casino incorporation. What was once a less obvious choice is now seen as a solution, with some industry experts calling it “most suited for crypto casinos.”

The absence of excessive bureaucracy, combined with a pro-crypto stance, has helped Costa Rica build what can only be described as a vibrant crypto-gambling ecosystem, but it is not the only reason operators are paying attention. Behind Costa Rica’s growing popularity is a simple but powerful combination of lower costs compared to other alternatives, no taxation on foreign-sourced income, and relatively light-touch oversight of gambling activity.

Nevertheless, Costa Rica’s lighter-touch regime does not remove the need to register correctly and maintain continuous compliance. Given the uncertainties surrounding the vertical’s regulatory landscape, entrepreneurs can approach specialized law firms such as Inteliumlaw who have developed the sector-relevant know-how to effectively support Costa Rica gaming license acquisition and bring much-needed certainty to the crypto-gambling project setup.

With proven success in structuring online casino projects that “combines traditional gambling with blockchain technology,” they offer full-fledged support covering company formation, licensing, and continuous compliance for operators to build legally sound structures and succeed in the long term.

As digital assets move deeper into online gambling, crypto-friendly gambling models are becoming a necessity for operators targeting players who rely on digital assets. With this in mind, Costa Rica becomes especially relevant, offering an attractive option for legally serving this audience, with its prominence as a crypto casino hub likely to remain strong in the years ahead.

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Central Europe

Habanero goes live on Favbet Romania

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Deal adds Habanero’s slots and table games to Favbet.ro as the supplier targets further growth in CEE regulated markets.

Habanero has gone live with Favbet Romania, rolling out its slots and table games portfolio on the operator’s locally focused platform in Romania’s regulated online market.

Under the agreement, Favbet Romania players gain access to Habanero’s full catalogue. The companies positioned the launch as part of Habanero’s wider push to add regulated operator partners across Central and Eastern Europe.

Toni Karapetrov, Head of Corporate Communications at Habanero, said: “Favbet Romania is a well-respected brand in Europe and exactly the kind of partner we look to work with as we deepen our presence in the market. Romania players have a strong appetite for our content and we are confident our games will resonate well with their audience.

“Romania is an important market for us, and going live with this operator is another strong step in our continued European expansion across high-growth regulated markets.”

Cristian Sapovici, Head of Casino, Favbet Romania, said: “The collaboration between Favbet Romania and Habanero has been strong from the very beginning, and this co-branded collaboration agreement marks an important step in strengthening our strategic partnership.

“Our shared objective is to deliver a more integrated gaming experience for players in Romania, supported by consistent visibility, dedicated campaigns, and a stronger presence of Habanero content within the Favbet.ro ecosystem.”

Habanero said it is now live in 22 European regulated markets, and counts operators including Entain, Sisal and Betway among its partners.

The post Habanero goes live on Favbet Romania appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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Allen Terleto VP Global Partners and Ecosystem at Cockroach Labs

Continent 8 launches managed CockroachDB service for global iGaming infrastructure

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Continent 8 Technologies, a leading provider of managed IT solutions for the global iGaming and online sports betting industry, today announced the launch of its fully managed CockroachDB service. The offering expands Continent 8’s portfolio across AWS Outposts, hybrid cloud, and Kubernetes environments including AWS EKS – enabling operators and suppliers to deploy distributed, highly resilient data infrastructure.

The iGaming industry is entering a new phase defined by rapid scale, real-time player interactions, and increasingly complex regulatory requirements. Operators must support high-throughput transactional workloads across regulated markets while adhering to strict data sovereignty and compliance mandates – from the U.S. in each individual regulated state to country-specific regulations worldwide. At the same time, traditional monolithic databases are being pushed beyond their limits, struggling to scale dynamically and operate consistently across modern, distributed environments.

CockroachDB’s cloud-agnostic and PostgreSQL-compatible distributed architecture directly addresses these challenges by enabling strongly consistent transactions across regions and hybrid deployments. This allows operators to operate across markets while maintaining strict control over where data resides and how it is managed. Combined with Continent 8’s global footprint – spanning more than 100 locations across the globe in regulated jurisdictions – the service provides a foundation for deploying infrastructure closer to players without compromising compliance or performance.

“Continent 8 has always focused on delivering infrastructure that meets the unique demands of the iGaming industry – where performance, compliance, and uptime are non-negotiable,” said David Brace, Chief Alliance & Partnership Officer, AWS, at Continent 8 Technologies. “As our customers grow across regulated markets, the database becomes a critical component. Our managed CockroachDB service provides the consistency, resilience, and deployment flexibility required to support that growth.”

As operators scale into new markets and adopt hybrid deployment models spanning on-premises, cloud, and edge environments, the need for integrated, multi-region infrastructure continues to grow. By incorporating CockroachDB into its portfolio of hosting, cloud, connectivity, and cybersecurity solutions, Continent 8 delivers a unified platform designed to simplify operations while supporting massive scale in regulated environments.

“Partnerships like this are critical as operators move toward more integrated, ecosystem-driven infrastructure models,” said Allen Terleto, VP Global Partners and Ecosystem at Cockroach Labs. “By combining Continent 8’s managed services and AWS expertise with CockroachDB’s distributed SQL capabilities, we’re enabling customers to build and operate modern applications across hybrid environments with greater flexibility and control. It also strengthens the broader ISV ecosystem supporting iGaming, making it easier to bring new services to market on a data platform that can scale with the evolving demands of the industry.”

The post Continent 8 launches managed CockroachDB service for global iGaming infrastructure appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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