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Kambi Group plc Q4 Report 2019

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Financial summary

  • Revenue amounted to €26.7 (21.7) million for the fourth quarter of 2019, and €92.3 (76.2) million for the period January to December 2019
  • Operating profit (EBIT) for the fourth quarter of 2019 was €6.2 (4.2) million, with a margin of 23.1% (19.2%), and €14.7 (12.7) million for the period January to December 2019, with a margin of 16.0% (16.7%)
  • Profit after Tax, including €0.5 million of impairment charges, amounted to €4.6 (3.3) million for the fourth quarter of 2019, and €10.4 (9.8) million for the period January to December 2019
  • Earnings per share for the fourth quarter of 2019 were €0.152 (0.110), and €0.345 (0.326) for the period January to December 2019
  • Cash flow from operating and investing activities (excluding working capital) amounted to €4.4 (2.8) million for the fourth quarter of 2019, and €8.6 (8.6) million for the period January to December 2019
  • The AGM will be held on 13 May 2020 at Kambi’s Stockholm office. The board has decided to propose that no dividend is paid out (2018: no dividend)

Key highlights

  • Strong financial performance with 23% year-on-year rise in Q4 revenue and 52% year-on-year increase in Q4 operator turnover, driven by further expansion into new US states and new customer launches
  • The quarterly performance contributed to full year 2019 revenue growth of 21% and an operator turnover increase of 37% compared to 2018
  • Signed Seneca Gaming Corporation in November and launched in all three of Seneca’s New York casinos in December
  • Launched with DraftKings and New Hampshire Lottery when going live online in New Hampshire in late December
  • A record 11 Kambi partners named in the prestigious EGR Power 50 ranking, which lists the industry’s most powerful operators

Kristian Nylén, Chief Executive Officer:

“I’m delighted to report another strong quarter for Kambi, which rounds off a year in which annual revenues grew by more than 20% and operator turnover by more than a third. Looking back on 2019, it was another great year for Kambi, as we continued to build out a fantastic sports betting product, expanded into multiple new markets, and signed six new partners, all of which leaves us in a great place for 2020.

In the previous report, I highlighted the momentum we could see building in operator turnover, and this trend continued in Q4 with each month delivering a greater number than the last. In total, Q4 operator turnover increased by 52% year-on-year and 36% sequentially – considerably higher volumes than Kambi has ever seen. While much of this growth was derived from our US partners, we also saw double-digit turnover growth in markets outside of the US, all of which contributed to strong revenue growth of 23%.

While the year was pleasing for many reasons, 2019 ended with news our partner DraftKings had entered into an agreement to acquire its own sports betting technology and therefore will no longer be dependent on Kambi. Our revenues from DraftKings are likely to be unaffected throughout 2020. I remain of the view that DraftKings’ long-term prospects would be better served with Kambi but also that this will increase the appeal of Kambi to an even greater level. We remain firmly committed to the US, where we have a diverse network of partners which have fantastic potential for growth, particularly as more states regulate.

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We continue to prove that we are the sports betting partner operators can trust to deliver. In Q4, we launched in seven casinos and a variety of online sportsbooks across multiple jurisdictions. I’m particularly proud we were able to launch with our first US lottery, when going live in New Hampshire with DraftKings in December. I was also pleased to make our retail debut in South Africa when we launched the Kambi Sportsbook inside the Sun International-owned Grand West Casino in Cape Town.

I’ve spoken previously about the strengths of Kambi’s retail product and our ability to roll out at speed. These assets were both on display during Q4 when we successfully signed a new customer in Seneca Gaming Corporation and subsequently launched in its three New York casino properties within a matter of weeks. Seneca is a great customer signing for us. Not only is it an organisation which shares our values of trust and collaboration, but the fact it is owned by one of the most respected US Native American tribes ensures it is a partnership that will resonate within the tribal community nationwide.

The evolving nature of the sports betting industry means there will always be challenges to overcome but I know we have built a robust business with the capability and strength to withstand these pressures. We operate in a fast-growing market, one which continues to embrace regulation and will therefore present Kambi and our partners with exciting opportunities for many years to come. Be in no doubt Kambi is well positioned both in the US and globally and I look forward to a prosperous 2020.”

You are invited to participate in a report presentation at 10.45 (CET) with Kambi Group plc’s CEO Kristian Nylén and CFO David Kenyon. The presentation will be held in English via a telephone conference and can also be accessed via an audiocast using the link below.

Questions can be asked on the telephone conference or sent via the audiocast link. Please see details in the link below:

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https://financialhearings.com/event/12006

Numbers for participation in the telephone conference:

Dial-in number SE: +46850558368 UK: +443333009031 US: +18335268398

Link to the audiocast: https://tv.streamfabriken.com/kambi-group-q4-2019

Link to report page: https://www.kambi.com/investors/financial-reports-and-presentations/quarterly-reports

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Industry News

CasinoWebScripts Enables Direct Provider Connections and Eliminates the Need for Aggregators

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CasinoWebScripts, a leading provider of iGaming software solutions, is drawing attention to a powerful infrastructure model already in use by several clients — one that enables direct integration between online casino operators and game content providers. As the industry evolves, the company is now actively promoting this approach as a smarter alternative to traditional aggregation.

In the conventional model, aggregators act as intermediaries between content providers and casino platforms. While convenient, this structure often limits operators’ control over technical and commercial aspects, introduces latency and adds additional costs. CasinoWebScripts’ model removes the need for an aggregator by enabling operators to connect directly to game providers using a simplified and consistent integration method.

“Our goal is to simplify the way operators work with game studios, regardless of the type of casino they operate — whether it’s real-money, crypto, or social sweepstakes. By providing the tools and infrastructure for direct connections, we empower both sides to negotiate directly, optimize performance, and reduce third-party dependencies,” said Oscar Stevens, Head of Business Development at CasinoWebScripts.

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Key Features of the Model Include:

• Direct Integration: Operators connect with game providers through a unified framework, without using an aggregator.

• Faster Load Times and Lower Latency: The streamlined architecture improves game performance and platform responsiveness.

• Independent Commercial Agreements: Operators and providers manage their own contracts, pricing and terms with full autonomy.

• Easy Expansion: The system supports the quick addition of new providers, with minimal integration overhead.

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• Technology-Only Role: CasinoWebScripts supplies the infrastructure but does not interfere in commercial relationships.

This infrastructure shift reflects growing demand from operators looking for more autonomy in their business models. It also addresses concerns about transparency and technical bottlenecks that often arise with aggregator-based systems.

“Our platform is designed to serve those who want to scale fast and retain control over their operations. With this model, operators no longer have to compromise on performance or commercial independence,” added Stevens.

The post CasinoWebScripts Enables Direct Provider Connections and Eliminates the Need for Aggregators appeared first on European Gaming Industry News.

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Compliance Updates

Exclusive Commentary from Vixio On Their AML Outlook Findings

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Your recent AML Outlook report highlights over €36 million in fines issued across Europe in just one year. What recurring weaknesses or compliance gaps are regulators most commonly identifying in payments and e-money firms?

John Gidla (JG): Regulators continue to flag underinvestment in anti-financial crime controls as a key concern for payments and e-money firms. Common themes include weak governance, limited oversight, and fragmented controls, all of which increase vulnerability to financial crime. There’s a growing expectation that firms scale their compliance frameworks in line with their risk exposure and growth trajectory

 

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The report mentions that AML compliance can be costly—yet the reputational and financial risks of non-compliance are even greater. What are the most cost-effective measures firms can implement today to strengthen their AML frameworks without overwhelming their budgets?

JG: While not all firms can afford advanced compliance tools, strong governance remains one of the most cost-effective ways to reduce risk. Practical steps such as training staff on emerging threats, embedding a culture of accountability, and regularly updating frameworks as the business grows can go a long way in strengthening AML resilience without major spend.

 

With the creation of the EU’s new AMLA authority, do you expect a more consistent and centralized enforcement approach across Europe? How might this change how firms prepare for inspections and adapt their compliance strategies?

JG: AMLA has the potential to bring greater consistency to AML enforcement across the EU, addressing long-standing issues caused by fragmented supervision and uneven implementation by national authorities. Its impact will depend on how much direct oversight it gains, how assertively it acts on cross-border risks, and whether it can close the regulatory gaps that have permitted high-profile scandals. Firms should expect more rigorous and standardised inspections and will need to ensure their compliance programmes are not only locally robust, but scalable across jurisdictions.

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Vixio emphasizes the importance of a proactive rather than reactive compliance culture. In your view, what does a ‘proactive’ AML strategy look like in 2025, and what technologies or best practices are leading firms adopting to stay ahead?

JG: A truly proactive AML strategy in 2025 extends beyond technology to encompass a strong compliance culture at every level of the organisation. Leading firms understand that combating financial crime isn’t just the responsibility of the compliance team — it’s integrated into day-to-day operations, with senior leadership driving risk awareness across departments. In terms of technology, firms are increasingly adopting AI, machine learning, and automated monitoring systems to detect suspicious activity early and reduce human error. However, culture plays a critical role; firms that foster a compliance-first mindset and invest in ongoing staff training are better positioned to adapt to emerging threats and ensure that their compliance frameworks evolve in step with business growth and digital transformation. A proactive approach also means constantly reassessing risk and using data to predict and prevent issues, rather than just reacting to them. With regulations in constant flux, and regulators ramping up enforcement, proactive compliance looks like implementing strategies to anticipate regulations, not just react to them. In Vixio’s PC Outlook Report, we found that a clear majority of firms surveyed are using some form of outsourcing for their compliance functionality, turning to firms like Vixio to get ahead of regulatory change.

 

Thanks to John Gidla, Head of Payments Compliance at Vixio, for his insightful responses.

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The post Exclusive Commentary from Vixio On Their AML Outlook Findings appeared first on European Gaming Industry News.

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Gambling in the USA

Gaming Americas Weekly Roundup – April 28-May 4

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Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.

Latest News

Bragg Gaming Group announced it has reached an agreement with its lenders, certain entities controlled by Doug Fallon, to repay USD 5 million of its outstanding USD 7 million secured promissory note and to extend the maturity of the remaining USD 2 million until June 6, 2025 (the Note). The company is in the process of securing a new revolving credit facility from a third-party lender. This facility is expected to offer more favourable terms than the existing Note, including lower borrowing costs and improved drawdown flexibility. All other terms of the original Note remain unchanged.

PENN Entertainment Inc announced plans for an expected $180–$200 million project to relocate its Ameristar Casino Hotel Council Bluffs (Ameristar) riverboat casino operations to a new, state-of-the-art land-based property to be rebranded as Hollywood Casino Council Bluffs (Hollywood Council Bluffs). The proposal is approved by the Iowa Racing and Gaming Commission in conjunction with a 15-year extension of Ameristar’s partnership with the nonprofit Qualified Sponsoring Organisation (QSO) Iowa West Racing Association. All commercial operators in Iowa are required to have an operating agreement with a QSO licensed to conduct gaming operations. Under the proposed plan, the new Hollywood Council Bluffs is expected to include roughly 125,000 square feet of new development with approximately 58,000 square feet of gaming space.

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PENN Entertainment Inc announced that it intends to nominate Johnny Hartnett and Carlos Ruisanchez for election to its Board of Directors following discussions with HG Vora Capital Management LLC (HG Vora). Ron Naples has informed the Board that he will retire from the Board, effective immediately. Barbara Shattuck Kohn and Saul Reibstein have notified the Company that they will not stand for reelection at the 2025 Annual Meeting of Shareholders. The Board now comprises eight directors, seven of whom are independent.

Partnerships

The National Collegiate Athletic Association (NCAA) and Genius Sports Limited have announced a significant extension of their long-term partnership, reinforcing their shared commitment to innovation, transparency and the integrity of college athletics. Under the expanded agreement, Genius Sports has been appointed as the exclusive distributor of official NCAA data to licensed sportsbooks for all post-season tournaments, including March Madness, through 2032. This long-term agreement ensures the delivery of fast, accurate and secure data to the regulated sports betting market.

PrizePicks, the largest daily fantasy sports operator in North America, announced that it has been named the Official Daily Fantasy Partner of the San Francisco Giants. The new partnership strengthens the DFS leader’s presence in professional baseball and features digital and in-park activations at Oracle Park. As part of the multi-year partnership, PrizePicks branding will be showcased prominently throughout Oracle Park with rotating signage behind home plate and LED signage on each baseline. PrizePicks logos will be featured across the K-Counter in right field, creating an interactive experience for fans in the ballpark. Fans seated on top of the right field wall near the strikeout counter will have the opportunity to flip over the PrizePicks branded signs, revealing a “K” for each strikeout earned by a Giants pitcher.

The post Gaming Americas Weekly Roundup – April 28-May 4 appeared first on European Gaming Industry News.

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