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Kambi Group plc Q3 Report 2022

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Financial summary

  • Revenue amounted to €36.7 (Q3 2021: 41.6) million for the third quarter of 2022 and €108.2 (2021: 127.5) million for the period January to September of 2022
  • Operating profit (EBIT) for the third quarter of 2022 was €3.9 (14.7) million, at a margin of 10.6% (35.4%), and €16.1 (50.0) million, at a margin of 14.9% (39.2%) for the period January to September of 2022
  • Earnings per share for the third quarter of 2022 were €0.084 (0.384) and €0.370 (1.302) for the period January to September of 2022
  • Cash flow (excluding working capital and M&A) amounted to €1.8 (11.9) million for the third quarter of 2022 and €7.3 (39.8) million for the period January and September of 2022

Key Q3 highlights

  • Operator turnover increased by 12%, driven by new partner signings and market launches
  • Expanded the partner network in the Americas with four new signings of ilani, Mohegan, Oaklawn Racing Casino Resort and Ondiss
  • Acquired front end specialist Shape Games, a profitable and fast-growing business that will provide Kambi with market-leading native front end technology

Highlights after Q3

  • Partnered with Great Canadian Entertainment, a leading on-property gaming and entertainment company owned by an affiliate of Apollo Global Management
  • Signed agreement with PENN Entertainment that provides for ongoing revenue share payments during the transition period and $27.5 million in early termination and transition fees

“The third quarter is always the most challenging for the sports betting industry given the quiet sporting calendar and this year was no exception. It was also a quarter marked by growing global economic uncertainty and higher cost of living, trends which show little sign of subsiding any time soon. Despite this, Kambi proved its resilience once more and I am pleased to report another busy quarter for the business with operator turnover growth of 12%.

Kambi also saw great commercial momentum during the quarter with the signings of ilani, Mohegan, Oaklawn and Ondiss, and with the recent signing of Great Canadian Entertainment, one of Canada’s largest on-property gaming companies, Kambi’s partner network was significantly strengthened. Owned by Apollo Global Management, which holds a number of gaming assets, Great Canadian has the potential to become a major player in the Canadian sportsbook market and its selection of Kambi underlines our position as the partner of choice in the Americas.

Our UX capability was also enhanced during the quarter with our acquisition of front end specialists Shape Games. This is a landmark deal for Kambi for many reasons. Crucially, it gives us the fully-fledged, native front end capability at a time when the front end experience is a more vital part of the sports betting value chain than ever before. Having worked closely with Shape Games on various projects in recent years, I have seen first-hand the strength of their technology and the level of expertise they possess, and I am pleased to welcome such a profitable and rapidly growing business to the Kambi Group. The acquisition will not only complement our turnkey solution but it also aligns with our modularisation strategy with the front end module set to be sold as a standalone service outside of the existing network, thereby increasing our total addressable market.

We continue to make great strides towards executing our modularisation strategy and can reveal that our award-winning Bet Builder, which recently launched for NBA, the final major US team sport to be added to the product, has been identified as the first standalone module we’ll go to market with. Unlike our key competitors, Kambi’s Bet Builder was created as part of the core sportsbook, thereby benefitting from our expertise in areas such as competitive pricing, unique user experience and risk management, creating a compelling product for operators to integrate.

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Our future is looking promising, operating from a strong position as we enter an economic recession which, while it will no doubt present challenges, may prove positive for B2B businesses such as Kambi in the long term. When also taking into consideration the recent start of the US basketball season and a World Cup still to come, we look forward to ending 2022 on a high before embarking on an exciting 2023.”

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Playtech: Appointment of Non-executive Director and Chairman Elect

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The Board of Directors of Playtech, the leading platform, content and services provider in the online gambling industry, has announced that John Gleasure has been appointed to the Board with a view to his succeeding Brian Mattingley as Non-executive Chairman.

John joins the Board as an independent Non-executive Director and Chairman Elect, and is expected to assume the role of Chairman after Playtech’s annual general meeting in May 2025, at which time Brian will step down as Chairman and from the Board.

John brings 30 years of experience across the sports, media and technology sectors, in addition to relevant Board experience from a range of international companies. He currently serves as a Non-executive Director at DAZN Group, the leading global sports subscription service, and is a Non-executive Director (and previously Executive Chairman) at The Sporting News, a global digital publisher. John was a founder of Perform, a digital sports media business, growing it into a leading provider of live data and content to online betting groups before the business listed in 2011. John previously held leadership roles at Sky Sports, Hutchison 3G and Sony Pictures.

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Brian Mattingley, commenting on the changes, said: “We are very pleased to welcome John to our Board as a new Non-executive Director and Chairman Elect. John’s significant experience and knowledge will be a tremendous asset for Playtech as it continues its transformation into a predominantly pure-play B2B business. I look forward to giving him every support during this period of transition.”

John Gleasure, commenting on his appointment, said: “I am delighted to be joining Playtech at such a pivotal moment in its history. Playtech is a unique and highly innovative business, underpinned by market-leading technology and relationships with the world’s leading gambling operators. I’m excited about the opportunities ahead, and I look forward to working with everyone at Playtech to drive forward its strategy and create further value for our shareholders.”

The post Playtech: Appointment of Non-executive Director and Chairman Elect appeared first on European Gaming Industry News.

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Ladbrokes to sponsor 2025 Thirsk Hunt Cup

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Thirsk Racecourse has announced that Ladbrokes will sponsor the 2025 Thirsk Hunt Cup.

First run in 1859, the £50,000 mile handicap is Thirsk’s most prestigious race and highlight of Thirsk Hunt Cup Day on Saturday, May 3.

Ladbrokes is the biggest and best-known betting brand in the UK with over 1500 betting shops, a digital betting business and a long-standing association with horse racing dating back many decades.

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The company boasts a strong sponsorship portfolio in horse racing, including Kempton Park’s Ladbrokes Christmas Festival, the Ladbrokes Chester Cup and the Ladbrokes Chase at the Dublin Racing Festival.

Ladbrokes also sponsors leading Jump trainer Dan Skelton, who writes a weekly blog as he bids to win the British Jump trainers’ championship for the first time.

Farhh is the most notable winner of the Thirsk Hunt Cup in recent years, taking the 2012 edition by six lengths before a memorable Group 1 double the following year in the Lockinge Stakes at Newbury and Ascot’s Champion Stakes.

Simon Clare, PR Director for Ladbrokes, said: “We are excited to sponsor such an iconic and prestigious race as the Thirsk Hunt Cup, and look forward to partnering with Thirsk Racecourse as we seek to strengthen our support and promotion of the sport.”

James Sanderson, Chief Executive and Clerk of the Course, said: “We are delighted to have Ladbrokes sponsoring the Thirsk Hunt Cup and its supporting programme in 2025. The £50,000 Ladbrokes Thirsk Hunt Cup is an early Flat season highlight in the North and we are very grateful for Ladbrokes’ most valued support.

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“Over the past 10 years, northern-based trainers have held a vice-like grip on the contest, with the notable exception of Mick Channon (and STORTING) in 2021. Thirsk always welcomes challengers from far and wide but taking the 2025 Ladbrokes Thirsk Hunt Cup down south will be no easy task.”

The post Ladbrokes to sponsor 2025 Thirsk Hunt Cup appeared first on European Gaming Industry News.

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Arturs Korolkovs, Media 24: “Radical Transparency Is Our Strategy”

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We’ve recently sat down with Arturs Korolkovs, Head of Sales at affiliate marketing company Media 24, to talk about building long-term partnerships in iGaming, his approach to industry events, and key trends of the affiliate sector — from deal structures and listing fees to navigating increased competition.

When did you join Media 24 and how has your role evolved since then?

I joined the company in 2020, right in the middle of COVID. It was a time of big changes for a lot of people, both in work and in life. I was actually the company’s first employee, and together, we worked on launching our first website.

In the beginning, I had little formal experience in sales or partner management, so I was doing a bit of everything. Uploading content, editing videos, handling social media. But as the company grew, so did my role. Over time, I transitioned fully into partner management, starting as an account manager and working my way up to the Head of Sales.

You attend many conferences and industry events throughout the year. What are your main priorities and how do you measure success there?

In the early days, conferences were more like hunting. Pure acquisition mode, trying to get our name out there and sign initial deals. Now, it’s a far more strategic play. Maintaining relationships, gaining new insights, and staying ahead of industry trends. Conferences aren’t just about sales. It’s an opportunity to gather valuable information that helps both the company and my own professional growth.

How we measure success has shifted too. It’s not solely about the number of contracts signed right there and then, though we certainly track leads that convert into long-term partnerships. We evaluate success by asking: Did we meaningfully strengthen ties with our top-tier partners? Did we gain specific, actionable insights – perhaps about competitor moves or regulatory shifts that will impact our strategy? And did we initiate promising conversations that lay the groundwork for valuable, long-term collaborations? That deeper, strategic ROI is what defines a successful conference for us now.

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What are the key factors you consider when deciding whether to start a partnership with a specific operator?

Beyond the obvious things like relevant GEOs and a strong product, the initial communication with the affiliate manager is a massive factor. Are they responsive? Do they communicate clearly? This is the person you’ll be working with long-term, so having a good connection is crucial.

And yes, reputation is critical. The industry is smaller than it looks. Over time, you build a network, and there’s always ways to ask around and get feedback about a brand.

What’s your approach to building long-term relationships with partners?

Radical transparency. We’re open about our traffic sources, our methods, and even potential challenges we foresee. And we expect the same from the operator. Hiding bad news does more harm than good in the long run.

Beyond that, it’s important to proactively add value. By sharing market insights, providing constructive feedback, and maintaining regular meaningful contact. It’s about creating a relationship where both sides feel invested in the other’s success. The more open and proactive the communication, the stronger the partnership.

A lot of affiliates are working with the CPA deals, others prefer Rev Share. What’s Media 24’s approach here and why?

Ideally, a hybrid model works best. But if I had to choose between CPA and Rev Share, I’d go with Rev Share. For SEO traffic, it’s the most effective and sustainable model in the long run. And it’s probably the fairest model for both sides of the deal.

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CPA can be situationally useful. Maybe for testing a new, unproven GEO, or launching a new project. But if we’re talking about a long-term strategy and good traffic quality, Rev Share wins every time.

There’s a differing opinion about listing fees in the industry. What’s your take on this?

We see listing fees as a mechanism for building strong and sustainable partnerships. In most cases, especially with new partners, we prefer to work with listing fees. Look, when we onboard a new brand, we’re investing significant resources immediately. Creating content, SEO, traffic allocation — all that requires a budget. This happens before we see a single dollar in commission. And without any guarantees on performance, GEO stability, or long-term commitment from the operator.

At the same time, we always take a flexible approach. For trusted, long-term partners with a strong track record, we are open to alternative structures. It’s all about finding a setup that works for both sides and ensures mutual long-term growth.

How can affiliate marketing companies handle increased competition and what are the ways to stand out in the industry?

Quality over quantity. A lot of affiliates still focus on pumping out mass content, but that approach is becoming less effective. Today you seriously have to focus on product improvements and user experience. The best way to stand out is through strong branding, engaging content, and a clear value proposition.

Building long-term relationships with partners also plays a huge role. In a crowded market, reputation and the ability to collaborate strategically become powerful differentiators. At Media 24, we believe in growing together with our partners, and that long-term thinking continues to pay off.

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The post Arturs Korolkovs, Media 24: “Radical Transparency Is Our Strategy” appeared first on European Gaming Industry News.

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