Kambi Group, a leading sports betting technology provider, reported an impressive business period fueled by high margins during the World Cup, pushing its shares near a 52-week high. The company’s revised adjusted EBITA forecast now ranges from €23 million to €27 million, up from the previous €20 million to €25 million. CEO Werner Becher credited their AI trading system for the success, claiming it has played a pivotal role in transitioning sports to technology with more advancements expected in the coming months.
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World Cup Betting Drives Revenue Growth
Kambi processed over 100 million bets during the World Cup, generating more than €1 billion in handle with an 18% margin through its turnkey platform. This high margin, noted by CFO David Kenyon, likely constrained turnover, although the event did lead to increased revenue and customer growth. Despite rising World Cup data costs, operating expenses decreased. Including Odds Feed+ results, the company handled bets totaling over €100 billion, doubling last year’s EBITDA to €7.6 million. The tournament’s momentum extended into Q3, ending on July 19.
Expanding Customer Base Amidst High Margins
Becher emphasized that the World Cup remains critical for acquiring new customers, with 24% of all bets coming from newcomers. However, the high margin could temper future growth metrics. Kambi’s advanced AI trading facilitated over 1 million unique parlays for the finals, a figure Becher deemed impossible with manual systems. This led to a surge in live parlays, representing 22% of all live betting, up from just 3% during the 2022 World Cup. Becher noted, “As leagues like the Premier League resume, those relying on manual trading will need to reduce offerings, whereas our automated systems allow us to maintain broad coverage.”
AI Trading and Market Strategy
Kambi’s AI system now manages trading for several sports, including soccer and basketball, with testing for football and plans for table tennis and esports underway. Becher suggested operators could use the World Cup margins for promotional strategies to retain customers, stating, “If they wish, they can give back a bit of this high margin to their partners and be more aggressive on bonusing.” Industry focus on profitability could draw top-tier operations back to Kambi’s offerings, with Becher highlighting the potential of their Odds Feed+ product, which he believes surpasses current market options.
Considerations for Future Predictions
Prediction markets accounted for around 30% of the U.S. sports betting volume during the World Cup, mostly in states like California and Texas, according to Becher. Despite this, Kambi remains cautious, awaiting potential Supreme Court rulings due to their extensive licensing. Becher mentioned, “We are in a wait and see position,” and hinted at ongoing evaluations and partnerships to prepare for potential market changes. The board will vote on the license renewal in Q3.
Marcus Chen brings a quantitative approach to poker strategy and sports betting analysis. With a background in data analytics and over eight years covering professional poker circuits, his articles combine statistical insights with practical advice for serious players looking to sharpen their edge at the table.
