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Kambi Group plc Class B (SE:KAMBI)
:KAMBI
Top Page
Kambi Group
(OTC:KAMBI)
Rating:73Outperform
Price Target:
kr127.00
▲(6.19%Upside)
Positive Factors
Financial Performance
Kambi's 4Q revenues are 4% ahead of consensus, with EBIT materially ahead.
New Partnerships
Kambi's 4Qs highlight further customer sign-up momentum, with new partnerships in Brazil, the US, and the Ontario lottery.
Strategic Expansion
Kambi has raised its long-term sports margin guidance, driven by automated pricing.
Negative Factors
Earnings Guidance
New EBITA guidance for FY25E is approximately 15% behind current consensus expectations.
Market Exits
Headwinds from Kindred market exits.
Tax and Regulatory Challenges
The benefits in FY25E are largely offset by customer migration, gaming tax increases, and a temporary VAT hit in Colombia.
Kambi Group (KAMBI) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr3.41B
Dividend YieldN/A
Average Volume (3M)114.06K
Price to Earnings (P/E)20.1
Beta (1Y)0.51
Revenue Growth-4.66%
EPS Growth-32.21%
CountrySE
Employees1,043
SectorConsumer Cyclical
Sector Strength64
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.33
Shares Outstanding29,878,567
10 Day Avg. Volume49,521
30 Day Avg. Volume114,061
Financial Highlights & Ratios
PEG Ratio-9.63
Price to Book (P/B)1.59
Price to Sales (P/S)0.00
P/FCF Ratio11.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr154.94Price Target Upside29.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Kambi Group Business Overview & Revenue Model
Company DescriptionKambi Group plc operates as a business-to-business supplier of managed sports betting services to business-to-consumer gaming operators in Europe, the Americas, and internationally. The company's services include compliance, odds-compiling, customer intelligence, and risk management services built on an in-house developed software platform. Kambi Group plc was founded in 2010 and is headquartered in Ta' Xbiex, Malta.
How the Company Makes MoneyKambi Group generates revenue primarily through its business-to-business (B2B) model by providing sports betting services to gaming operators. The company earns money by entering into revenue-sharing agreements with its partners, where it receives a percentage of the net gaming revenue generated from its sportsbook platform. Kambi's earnings are influenced by factors such as the volume of bets placed, the number of active users on its platform, and the overall performance of sporting events. Additionally, the company's strategic partnerships with prominent gaming operators contribute significantly to its revenue, allowing Kambi to expand its market presence and enhance its service offerings.
Kambi Group Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q3-2024)
| % Change Since: 1.44%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Kambi's solid growth, strategic partnerships, and strong financial position, while acknowledging challenges such as losing key partners and the need for cost efficiency improvements.Q3-2024 Updates
Positive Updates
Solid Underlying Growth and Revenue Increase
Kambi reported a 14% increase in operator turnover and a 16% rise in revenue year-on-year, excluding non-recurring items.
New Partnerships and Product Launches
Kambi signed key deals with Hard Rock Digital and Rei do Pitaco for their new Odds Feed+ product and a long-term contract extension with Rush Street Interactive.
Financial Strength and Share Buyback Program
Kambi announced a EUR 12 million share buyback program and reported a strong cash balance of EUR 60.5 million.
Successful Partner Launches
Kambi completed 9 partner launches, including LiveScore's Virgin Bet in the U.K. and Ireland.
Strategic Development in Emerging Markets
Kambi positioned for growth in the Brazilian market with new partnerships and a market-leading product.
Negative Updates
Kindred and LeoVegas Transition
Kindred and LeoVegas are moving away from Kambi's turnkey sportsbook, indicating potential revenue challenges.
Cost Base Reduction and Efficiency Focus
Kambi is working to reduce its cost base and improve operational efficiency, indicating current inefficiencies.
Marginal Revenue Guidance Adjustment
Kambi adjusted its full-year revenue guidance slightly downward, reflecting potential headwinds.
Company Guidance
During the Kambi Q3 2024 earnings call, the company provided several key metrics and guidance for the financial year. Kambi reported a revenue of EUR 43 million for the quarter, marking a 16% increase year-on-year when excluding last year's non-recurring revenues. The operator turnover rose by 14% to 687 from the previous year's 602. Kambi also saw an increase in their cash balance, ending September with EUR 60.5 million, bolstered by strong cash flow and an operating profit of EUR 3.6 million. The company announced a new EUR 12 million share buyback program, demonstrating confidence in their financial position. Kambi adjusted its revenue guidance for the full year to between EUR 170 million and EUR 180 million, narrowing it down towards the center of the initial range, and also indicated that costs are expected to be at the low end of their guided range, emphasizing operational efficiency. The company remains focused on expanding its addressable market through new product offerings like Odds Feed+, despite facing some near-term headwinds from existing partner transitions.Kambi Group Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 176.41M | 173.30M | 166.01M | 162.42M | 117.69M | Gross Profit |
| 176.41M | 173.30M | 166.01M | 162.42M | 117.69M | EBIT |
| 20.08M | -1.68M | 34.87M | 57.05M | 32.27M | EBITDA |
| 59.47M | 57.51M | 63.51M | 79.21M | 49.13M | Net Income Common Stockholders |
| 15.45M | 14.90M | 26.45M | 46.43M | 24.06M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 61.28M | 55.05M | 60.70M | 79.66M | 60.83M | Total Assets |
| 220.13M | 214.89M | 242.89M | 196.86M | 136.56M | Total Debt |
| 9.49M | 12.99M | 20.68M | 24.77M | 13.21M | Net Debt |
| -51.79M | -37.55M | -40.02M | -54.89M | -47.62M | Total Liabilities |
| 39.80M | 42.74M | 79.50M | 61.48M | 38.55M | Stockholders Equity |
| 180.32M | 172.15M | 163.39M | 135.38M | 98.02M |
| Cash Flow | Free Cash Flow | |||
| 24.24M | 18.67M | 20.58M | 47.46M | 19.55M | Operating Cash Flow |
| 53.70M | 49.84M | 49.00M | 72.33M | 38.59M | Investing Cash Flow |
| -29.66M | -42.73M | -64.78M | -39.62M | -19.03M | Financing Cash Flow |
| -13.07M | -17.35M | -1.86M | -14.25M | -3.18M |
Kambi Group Technical Analysis
Positive
119.60
Price Trends
111.86
Positive
112.86
Positive
115.14
Positive
Market Momentum
2.63
Negative
57.19
Neutral
68.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:KAMBI, the sentiment is Positive. The current price of 119.6 is above the 20-day moving average (MA) of 116.66, above the 50-day MA of 111.86, and above the 200-day MA of 115.14, indicating a bullish trend. The MACD of 2.63 indicates Negative momentum. The RSI at 57.19 is Neutral, neither overbought nor oversold. The STOCH value of 68.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:KAMBI.
Kambi Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | kr26.18B | 12.15 | 22.34% | 1.91% | 17.47% | 18.78% | |
75 Outperform | kr133.27B | 9.65 | 4.68% | 10.67% | 14.97% | ||
73 Outperform | kr3.41B | 20.14 | 9.13% | ― | -4.66% | -32.21% | |
62 Neutral | $6.84B | 11.41 | 2.80% | 3.87% | 2.70% | -24.58% | |
38 Underperform | kr137.32M | ― | -42.17% | ― | -31.61% | 26.26% |
* Consumer Cyclical Sector Average
Performance Comparison
SE:KAMBI
Kambi Group
119.60
20.00
20.08%
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Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.