Kambi Group Plc Class B · OMXSTO:KAMBI
Kambi Group Plc Class B — Q3 2022 Earnings Presentation
18 slides from Kambi Group Plc Class B's earnings presentation, Oct 26, 2022
Slide 1: Kambi Group plc Q3 2022 Report
Kambi Group plc Q3 2022 Report 26 October 2022 1
Slide 2: Agenda
Agenda 1. Highlights 2. Financial highlights 3. Shape Games acquisition 4. Modularisation update 5. Commercial updates 6. Summary 7. Q&A Kambi Group plc – Q3 2022 Report 2 CEO Kristian Nylén, CFO David Kenyon
Slide 3: Highlights
Highlights Top-line growth driven by new partner signings and market launches Partnered with Great Canadian Entertainment, one of the largest casino groups in Canada Acquired front end specialists Shape Games, strengthening 12% operator Kambi’s capability with the addition of native technology turno
Slide 4: Q3 2022 financial highlights
Q3 2022 financial highlights €36.7m €3.9m €38.1m Revenue Operating profit Net cash Q3 2021: Q3 2021: Q3 2021: €41.6m €14.7m €77.4m Kambi Group plc – Q3 2022 Report 4 CEO Kristian Nylén, CFO David Kenyon
Slide 5: Operator trading analysis
Operator trading analysis Kambi operators' turnover and trading margin 1100 1056 12.0% 989 1000 11.0% 911 900 10.0% 800 758 757 9.0% 700 669 656 8.0% 640 600 560 573 7.0% 505 500 6.0% 398 412 387 400 369 5.0% 334 307 300 273 259 4.0% 200 3.0% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q
Slide 6: Operator trading analysis
Operator trading analysis Kambi operators' turnover and trading margin 1100 1056 12.0% 1000 Q3 2022 989 11.0% 911 900 10.0% 257 800 758 757 9.0% 700 205 669 656 8.0% 640 600 178 573 7.0% 560 505 500 6.0% 398 412 387 400 369 5.0% 334 307 300 273 259 4.0% 200 Jul Aug Sep 3.0% Q1 2018 Q2 2018 Q3 2018 Q
Slide 7: Kambi Revenue Conversion
Kambi Revenue Conversion Q3 2022 vs Q3 2021 20% 10% 0% -10% -20% Operator Turnover Growth* FX impact Operator margin impact Taxes/marketing deductibles impact Other ** Kambi Revenue Growth * Operator turnover growth shown is based on Q3 2021 exchange rates ** Other includes the impact of volume-rela
Slide 8: Q3 Cash flow
Q3 Cash flow €m 90.0 80.0 70.0 60.0 50.0 40.0 30.0 Opening cash Operating profit Working capital, tax & other Amortisation & Depreciation Development costs & Tangible Acquisition of Shape Closing cash assets Kambi Group plc – Q3 2022 Report 8 CEO Kristian Nylén, CFO David Kenyon
Slide 9: Acquisition of Shape Games
Acquisition of Shape Games A profitable and fast-growing business − Revenue in 2022 is on course to approximately double from €7.6m last year − Revenue generated on fixed, revenue share or per-resource basis − Operating costs primarily staff-related, with head office based in Copenhagen Kambi Group
Slide 10: Native front end expertise enhances Kambi sportsbook
Native front end expertise enhances Kambi sportsbook Kambi gains crucial native technology as well as AI-driven Shape Games gains access to Kambi’s partner network recommendation engine and social features Real-time End user sports data Market-leading Native front end sportsbook experience layer Kam
Slide 11: Bet Builder to be first module launched
Bet Builder to be first module launched Continued progress with long-term product strategy − Kambi’s award-winning Bet Builder identified as the first standalone product Kambi will go to market with − Bet Builder was built into the core of the sportsbook, therefore creating a seamless user experienc
Slide 12: Q3 partner signings
Q3 partner signings Further strengthening Kambi’s footprint in the Americas Multi-channel Partnership with local On-property deal in Agreement expands agreement with tribal gaming Ontario expands on Kambi’s presence in one of the premier operator sees Mohegan’s recent Argentina from three racetracks
Slide 13: Q3 launches
Q3 launches The Netherlands and North America Europe Canada US Supported the relaunch of Powered the launch of Six partner launches Kindred’s online sportsbook Mohegan’s online sportsbook completed in Arizona, in the Netherlands in Ontario Arkansas, Indiana, Kansas and Maryland Kambi Group plc – Q3
Slide 14: Events after Q3: Great Canadian Entertainment partnership
Events after Q3 On-property partnership with Great Canadian Entertainment − Great Canadian Entertainment is one of Canada’s largest gaming companies − Kambi will provide its sportsbook to 10 of the operator’s casinos in the province of Ontario − Great Canadian is owned by Apollo Global Management, o
Slide 15: Events after Q3: New agreement with PENN Entertainment
Events after Q3 New commercial agreement with PENN Entertainment − PENN to migrate online starting Q3 2023 with retail migration expected to begin in 2024 − Kambi to receive $27.5 million in early termination and transition fees − Cooperation on additional US state launches during the period Kambi G
Slide 16: Summary
Summary Major UX leap forward Commercial momentum Well positioned to with acquisition of Shape accelerates with signing withstand global Games of Great Canadian economic outlook Kambi Group plc – Q3 2022 Report 16 CEO Kristian Nylén, CFO David Kenyon
Slide 17: Q&A
Q&A kambi.com 17
Slide 18: Thank you
Thank you kambi.com Kambi