Quarter 2 Earnings 2025: Kambi's revenue dwindles by 11.5% and EBITA is sliced in half, following Penn's departure.
**Kambi Group Faces Revenue Drop in Q2 2025, Attributes Decline to Various Factors**
Kambi Group, a leading sports betting provider, has reported a decline in revenue for Q2 2025. The dip can be attributed to a combination of seasonal challenges, regulatory hurdles, foreign exchange shifts, and the absence of transition fees received in Q2 2024 and H1 2024.
The revenue drop was primarily due to the absence of €4.5m in transition fees received in Q2 2024 and €8.9m in H1 2024. Kambi's CEO, Werner Becher, has expressed dissatisfaction with the current performance and ambitions for the business to grow further.
Despite the decline, Kambi has maintained its full-year guidance, expecting adjusted EBITA of €20m-€25m and total expenses of €150m-€155m, excluding FX revaluations. The company has also initiated its largest share buyback program to date, with a total value of SEK 165 million (€15 million), which runs until November 2025.
Becher attributes the softer results to a combination of seasonal and structural challenges, as well as external pressures such as foreign exchange movements, deposit limits in the Netherlands, and Colombia's VAT. The CEO remains optimistic about the company's ability to deliver value for its partners, expand its partner network, strengthen its product portfolio, and position the business for long-term, sustainable growth.
Kambi's operator turnover index decreased by 5% compared to Q2 2024, but the company's operator trading margin rose to 11.5%, exceeding its long-term expected range of 9.5%-11.0%. The EBITA margin for Q2 2025 declined by 44% year-on-year to 9.2%.
In the face of these challenges, Kambi has focused on growing its esports offerings and strengthening sportsbook partnerships, emphasizing long-term growth potential. The company reported key commercial wins during the quarter, including a new two-year turnkey sportsbook agreement and an Odds Feed+ deal with LeoVegas Group.
Shares in Kambi plunged nearly 9% immediately after the market opened following the release of Q2 2025 results. The company reported adjusted EBITDA for Q2 2025 was €12.4m, a 23% year-on-year decline. Adjusted EBITA for Q2 2025 was €6.0m, a 54.9% decrease year-on-year. Operating profit in Q2 2025 was €1.6m, a significant decrease from €6.2m in the same quarter of 2024. Cash flow, excluding working capital and M&A, declined to €1.3m in Q2 2025 from €8.1m in Q2 2024. Earnings per share for Q2 2025 were €0.009 (0.155), a decrease from the same quarter in 2024.
Kambi's revenue declined by 7.9% in H1 2025 compared to the same period in 2024, reaching €81.9m. The company continues to face a shifting regulatory landscape, with tax increases taking effect or announced in various locations such as Illinois, New Jersey, Maryland, Louisiana, and Brazil.
Despite the challenges, Kambi is optimistic about a stronger H2 2025, driven by new customer launches and seasonality. The company's esports betting product, powered by its Abios division, has grown to become the fifth-largest sport by turnover across its global network.
- Kambi Group, in its pursuit of long-term growth, has been expanding its esports offerings and sportsbook partnerships, with the goal of strengthening its position within the tech-driven esports platform.
- The decline in Q2 2025 revenues, though influenced by several factors, has not deterred Kambi from exploring new avenues for betting, such as esports, as part of its broader strategy with potential operators within the sportsbook sector.
- Amidst financial hurdles, Kambi's CEO has expressed a desire to leverage technology to bring innovative esports betting experiences onto the company's platform, aiming to enhance user engagement and drive future growth in the sportsbook market.
