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Kambi Group has decided to withdraw its 2027 financial targets due to slower-than-expected progress towards regulation in key markets.

The company initially set the targets in January 2023, aiming for revenue of between €330m and €500m, and EBIT exceeding €150m.

However, Kambi revealed that it had already commenced a review of the underlying assumptions that formed its 2027 financial targets in February.

“The board concluded that Kambi has made progress in areas within its control. However, slower-than-expected progress towards regulation in certain key markets would likely delay revenue from such markets,” Kambi stated.

During its Q1 2024 results presentation, Kambi emphasised that continued regulatory progress across the Americas and in strategically important Asian countries is crucial for achieving its 2027 targets.

“In general, the pace of sports betting regulation has slowed compared to previous years, illustrated by recent news that regulated sports betting in California is unlikely to occur in or before 2027,” the company added.

Kambi had projected that California would contribute approximately €20m to €25m in revenue in 2027, with minimal incremental costs.

New CEO, new targets

Earlier this week, Kambi announced Werner Becher as its new CEO. He will join the business on 25 July.

“The board will now focus its attention on providing Becher with full support in executing the company’s long-term strategy and extending Kambi’s lead as the world’s leading sports betting provider.

“The board believes that Kambi should have long-term financial targets. Such targets will be evaluated with the new CEO and communicated when appropriate,” the company stated.

In Q1 2024, Kambi generated €43.2m in revenue, marking a slight decline of 2% compared to the same period last year.

Approximately 90% of this revenue came from sportsbook operations, with the remainder from modularised odds feeds. Despite the dip in revenue, Kambi’s EBITDA increased by 10% year-on-year, reaching €14m.

Outgoing CEO Kristian Nylén suggested that Kambi had “built solid foundations for the future.”

The company reiterated its guidance for 2024, estimating revenue to be in the range of €170m to €180m.

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