Kambi's Q2 Performance: Challenging Conditions Lead to Lower Revenue
In a recent financial report, Kambi Group, a leading sports betting provider, revealed a decline in revenue for Q2 2025. The company's total revenue dropped by 11.5% to €40.5 million, partially attributed to a quieter sporting calendar, regulatory impacts, and market shifts.
However, when excluding transition fees reported in Q2 2024, the adjusted revenue decline was closer to 2%. This suggests that, despite the challenging environment, Kambi's operations have remained relatively steady. In fact, excluding these fees, revenues for the first half of 2025 actually increased by 2.3%.
Financial details showed that the Adjusted EBITA fell by about half to €3.7 million, representing a margin drop to 9.2% from 16.4% the prior year. Operating profit decreased 74.2% to €1.6 million, with pre-tax profit down 76.2% year-over-year to €1.5 million. Despite revenue pressures, total expenses declined by 3.8%, reflecting ongoing cost control efforts. Cash flow for the quarter was €1.3 million.
Geographically, operator turnover increased by 3.4% in the Americas, helped by Brazil's recently regulated market, offsetting declines in Europe and rest of world markets. Trading margin improved from 10.3% to 11.5%, supported by AI-driven trading on higher-margin products.
Despite these suboptimal results, CEO Werner Becher expressed optimism about Kambi's future. He highlighted ongoing achievements, new partnerships, and ambitions for stronger long-term growth. The company maintained its full-year guidance, confident that market challenges are temporary and that its technology focus and regulatory positioning will drive future expansion.
In a notable move, Kambi's board of directors initiated a share buyback program with a total value of EUR 15 million, marking the largest share buyback in the company's history. Additionally, Kambi extended its partnership with LeoVegas for an undisclosed period.
In summary, while Q2 2025 showed revenue and profit decreases due to market and regulatory challenges, Kambi Group’s leadership remains positive about future growth, backed by cost management, product innovation including AI, and expansion into regulated markets. The total revenue for the first half of 2025 was EUR 81.9 million ($96 million), down 7.9% year-on-year.
Kambi Group, in the face of declining sports betting revenue and challenges in the finance sector, has initiated a share buyback program valued at €15 million, signifying a significant step in its business investment strategy. This move, combined with ongoing cost management, product innovation, and expansion into regulated markets, indicates the company's optimism for long-term growth, despite short-term financial pressures.
