Kambi Group Plc has withdrawn its long-term 2027 financial targets, which aimed to triple the revenue and EBIT results of the sports betting technology group.
The board of directors at Kambi has retracted the “base assumptions” required to meet its 2027 targets of generating revenue 2-3 times the 2022 financial year level (approximately €330-500 million) and achieving an EBIT of over €150 million. These targets were initially announced in January 2023, providing investors with a long-term vision of significant revenue growth.
The original targets were based on five key strategies: leveraging platform flexibility to retain key partners, implementing AI-powered pricing, expanding North American contracts, signing tier-1 operators across the product portfolio, and entering Asian markets.
However, the Board concluded that while Kambi has made progress in the areas under its control, slower-than-expected regulatory developments in some key markets are likely to delay revenue growth from these regions.
Earlier this week, Kambi announced the appointment of Werner Becher as CEO, replacing founder Christian Nylen, who held the position for 14 years.
Kambi expects 2024 to be a transitional year, with revenues impacted by Penn’s online migration, contract renewals with Kindred and other partners, and regulatory delays in the Brazilian market.
Strategically important, in 2023, Kambi reorganized its financial assets by redeeming €8 million in convertible bonds held by former shareholder Kindred Group. This move gave Kambi the independence to control its future strategic direction. It is estimated that Kambi’s trading revenue in 2024 will be between €170 million and €180 million.
Corporate goals will now focus on commercializing Shape Games‘ client services UI/UX solutions and Abios’ esports data odds. Additionally, Kambi will launch its new Tzeract platform, the most sophisticated AI-powered trading solution for sports betting.
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