Kambi has announced a series of cost-cutting measures and will apply for financial support packages from the Swedish and UK governments.
Despite the coronavirus pandemic bringing major sport to a halt, Kambi has announced “strong” Q1 revenue expected to be in the range of €27.5-28.0m ($29-30m), with its cash balance at the end of the quarter in the range of €45-47m.
In the last week, however, the sports betting supplier says revenue has been as low as 25-30% of Q4 2019 levels.
Based on the measures Kambi plans to implement, operating expenditure in Q2 2020 will be 10-20% lower than Q4, with “associated savings in capitalised development costs” of 20-30%.
The measures put in place, along with certain by-products of the current situation, include:
- Applying for financial support packages designed to protect jobs, recently announced by Swedish and UK governments
- Kambi board members, its CEO and executive management have agreed to salary deferrals of 20%, 15% and 10% respectively
- Significantly reduced travel and marketing costs
- A freeze on staff recruitment and a substantial reduction in data costs associated with fewer sporting events
Kambi, though, did warn the “unlikely event” of the sporting calendar remaining this inactive would create an average quarterly cash outflow of between €7m-€9m after Q2.