Kambi Group (KAMBI) Q4 2016 earnings summary

Executive summary

• Q4 revenue was EUR 14.3m, marginally above Q4 2015, as operator turnover growth of 19% was largely offset by a weak betting margin.

• FY 2016 revenue rose 17% to EUR 56m; operating profit increased to EUR 8.8m from EUR 7.4m in 2015.

• Growth initiatives included Televisa and Greentube signings, alongside the launch of price differentiation for operators.

Financial highlights

• Q4 operating profit was EUR 1.8m versus EUR 3.3m; profit after tax was EUR 1.2m versus EUR 2.9m in Q4 2015.

• FY operating profit was EUR 8.8m versus EUR 7.4m in 2015; operating margin was 16%.

• Q4 operating expenses were EUR 12.5m, including staff, live information feeds, office and marketing costs.

• Q4 cash flow excluding working-capital movements was EUR 1m; FY cash flow was EUR 4.1m.

Outlook and guidance

• Televisa retail expansion and online/mobile launch were anticipated during 2017; Televisa and Greentube rollouts were expected partly or fully in H1 2017.

• Sales pipeline remained strong amid rising outsourcing interest and stiffer competition; strategy focused on investment in people and technology to sustain a premium position.

• January Premier League results were better than December, but no broader January–February performance update was given.