Kambi Group has posted a 33% year-on-year revenue increase for Q1, despite business being impacted by the coronavirus outbreak, which has led to a suspension in all major sport.
Revenue until 31 March was up to €27.9m ($30m), while profit saw a significant rise. Indeed, profit after tax rose 140% to €4.8m, while operating profit was up 162%, to €6.8m.
Alongside the rise in revenue and profit, operator turnover increased 27% for the quarter.
Before the suspension of live sport and a reduced schedule from 12 March, average daily operator turnover was up 47% and 7% higher quarter-on-quarter.
However, the final weeks of Q1 and early Q2 saw the sports betting supplier run at between 25-30% below previous Q1 levels.
Kambi CEO Kristian Nylén said: “While I have no doubt sports will return, the current situation has understandably led to a reduction in our revenues, although our teams have done a wonderful job to stem the flow and ensure our partners have a good product the sell.
“I’m confident the cost-saving measures we’ve introduced in recent weeks, our strong balance sheet, and the flexibility we have retained to be back running at 100% capacity almost immediately, will ensure we are able to do so, alongside our fantastic partners.”
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.
Stockholm-listed provider of sports betting technology Kambi Group announced Thursday that it has temporarily suspended its contract with Bulgaria’s National Lottery AD.
News about Kambi cutting ties with the gambling company come hot on the heels of sweeping changes in Bulgaria’s gambling law that, among other things, restricted lottery operations to the state-run Bulgarian Sports Totalizator.
Up until recently, National Lottery AD was Bulgaria’s largest provider of various lottery products, with scratchcards being its most popular offering in the tiny Balkan nation.
Kambi formed its partnership with the Bulgarian gambling operator in 2017. The provider agreed to power the online sports betting operation of National Lottery’s 7777.bg online gaming brand.
In a statement on its official website, Kambi said Thursday that it has moved to temporarily suspend the 7777 sportsbook after National Lottery has voluntarily surrendered its operating license to the Bulgarian Gambling Commission.
The sports betting provider did not dwell further on why it has moved to cut ties with its Bulgarian partner. The company only said that the recent discontinuation of its Bulgarian sportsbook would have “a small negative” impact on its 2020 revenue, should the temporary suspension continue.
Bulgaria Still Waiting for Gambling Tzar Extradition
The crackdown on privately-run lotteries caused a real media storm in Bulgaria that keeps raging on for nearly three months now. The frenzy is being fueled by the fact that National Lottery’s boss, Bulgarian businessman Vasil Bozhkov, is now facing multiple charges.
The clampdown on his business was prompted by claims that the business mogul and his lottery operation had for years failed to pay proper taxes for conducting its activities in Bulgaria.
Bozhkov fled his homeland shortly before he was leveled the first of a growing number of charges, ranging from leading an organized crime group, extortion, coercion, and attempted bribery. One of Bulgaria’s richest men is also probed for murder and rape.
Early in February, Bulgaria’s Chief Prosecutor Ivan Geshev announced that Bozhkov had been detained in the United Arab Emirates and that his office was preparing a request for his extradition.
Bozhkov has been released from custody, but UAE authorities have confiscated his passport to prevent him from leaving the country. Bulgaria and the UAE do not have an extradition treaty, but Bulgarian authorities have recently sent their Emirates counterparts a hefty set of documents relating to support extradition request.
Bulgaria’s prosecution office has also leveled charges against several of Bozhkov’s aides as well as the two most recent chairpersons of the country’s Gambling Commission as they are believed to have facilitated Bozhkov and his lottery business in dodging taxes, another charge pressed against the embattled mogul.