Kambi Group reported a drop in revenue of 11.5% year-on-year for Q2, and a drop in profits from €6.2 million to €1.6 million.
Werner Becher, CEO of Kambi Group commented, “While the first half of the year played out broadly as expected, I want to reiterate that I am not satisfied with where we are at today, with my ambition for the business being far greater.”
Tough Comparisons With 2024 Lead To Low Numbers
Revenue in the second quarter totalled €40.5 million, down from €45.7 million in Q2 last year. Q2 revenue in 2023 was also higher, at €42.9 million.
Last year’s Q2 figures included a €4.5 million payment from PENN Entertainment as the company ended their partnership, but even with this taken into consideration, revenue still declined by 2%.
For the first half of 2025 revenues were €81.9 million, a decrease of 7.9 per cent from 88.9 million last year. Excluding €8.9m of transition fees received in H1 2024, revenues increased by 2.3 per cent.
In a press release, Becher said, “Q2 2025 proved to be a quarter that reflected both the resilience of our business and the evolving dynamics of our industry. While results were in line with our expectations, they came against a backdrop of challenging market conditions and tough comparisons with Q2 2024.
“Last year’s quarter benefited from the uplift of the Euros and Copa América and included the last full quarter of transition fees from Penn Entertainment. Meanwhile, challenging dynamics include foreign exchange movements and regulatory and tax headwinds, such as deposit limits in the Netherlands and Colombia’s VAT, which continue to affect performance.”
Esports Betting Provides Optimism
Despite his disappointment, Becher said he was optimistic that the company will grow in the near future, and cited Kambi’s esports betting site as an area of growth.
Becher said, “Our esports betting product, powered by our Abios division, is also becoming an increasingly important part of our product offering. Esports via the Turnkey continues to grow in popularity and in Q2 was the fifth largest ‘sport’ across the global network based on turnover.
“We believe we have a leading esports product, one that’s not only proving its worth on the Turnkey but is fast becoming a unique selling point for our Odds Feed+ product, with few operators possessing this capability in-house.”
Deal With RedCap Expands Presence In Latin America
Kambi also signed a deal with Latin American operator RedCap to expand its presence in the region.
Becher commented on the deal stating, “RedCap will initially launch its Betpro and Starplay brands online in Panama and El Salvador, with scope to expand into retail and additional markets in the future. RedCap will be transitioning from a competing supplier, underlining our position as the home of premium sports betting solutions.”
The company has also extended its partnership with LeoVegas through a new two-year Turnkey Sportsbook agreement.
Becher is hopeful the recent deals will bring increased growth in the latter part of this year.
He ended the company statement by commenting, “Looking ahead to the rest of the year, the external environment will continue to pose challenges, but I remain optimistic that we can increasingly deliver value for our partners, expand our partner network, strengthen our product portfolio and position the business for long-term, sustainable growth.”
