From The Press Release

  • Revenue amounted to € 43.2m (Q1 2020: 27.9m) for the first quarter of 2021, an increase of 55%
  • Operating profit (EBIT) for the first quarter of 2021 was € 18.7m (6.8m), an increase of 173%, at a margin of 43.2% (24.5%)
  • Profit after tax amounted to €15.1m (4.8m) for the first quarter of 2021
  • Continued US expansion with launches across a number of jurisdictions including Michigan, Illinois, Virginia and Arkansas – the latter became the 14th state in which Kambi provides regulated sports betting
  • Strengthened global network through new partnerships with Racing & Wagering Western Australia and Casino Magic, extended partnership with Napoleon Sports & Casino

What We Are Watching

  • Kambi’s contract with DraftKings is nearing its end as DraftKings is now relying on SBTech, a company it merged with as a part of its SPAC deal

“Prior to that, there were rumors that DraftKings was looking to acquire SBTech to bring betting software in-house in a bid to bolster the scale of its sportsbook operations. Putting it all together, SBTech and Kambi are direct competitors. DraftKings now owns SBTech by way of the aforementioned SPAC transaction, so there is no reason for the sportsbook operator to be diverting financial resources to a rival.”

The Take

  • Kambi is fairly valued at 14 times sales and a normalised PE of 67 after taking into account its growth rate and growing operating margins
  • The company is closing new partnerships and working on mitigating the loss of DraftKings

“Kambi has its own impressive client roster, acting as the back-end services and software provider to familiar gaming names, such as Penn National Gaming, Rush Street Interactive, UniBet, 888 Sport, and Seneca Gaming Corp. The Swedish company is operational in 11 states, including three — Colorado, Illinois, and Michigan — that recently launched sports betting.” By Todd Shriber for Casino

Buy Alert

  • We have increased our position in Kambi by around 40%. We will re-evaluate our stake in Kambi should it fail to attract new partners
  • We’re also closely monitoring the ongoing consolidation in the gambling industry (e.g. Gamesys’ acquisition by Bally’s). This may lead more players to develop their own software in-house


Please note that this article does not constitute investment advice in any form. This article is not a research report and is not intended to serve as the basis for any investment decision. All investments involve risk and the past performance of a security or financial product does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products.


The author has a position in Kambi Group PLC. The author has no business relationship with any company mentioned in this article and the author is not receiving any form of compensation for this article other than contributions from paying subscribers.


Photo by Kaysha on Unsplash.