Kambi Group plc’s Board of Directors has made a pivotal decision to retract its financial targets set for 2027.
Reevaluation of financial targets:
Back in February, Kambi initiated a review of the assumptions underpinning its 2027 financial targets, which were initially communicated in January 2023. These targets aimed for a revenue increase of 2-3 times the FY2022 levels, equating to approximately €330 – €500 million, and an EBIT exceeding €150 million.
Upon review, the Board concluded that while Kambi had made commendable progress in areas within its control, slower-than-anticipated regulatory progress in key markets would likely defer revenue realization from those markets. Consequently, the decision was made to withdraw the financial targets.
According to the company’s press release, the Board acknowledges the importance of having long-term financial targets and will reassess and communicate these in collaboration with the new CEO at an appropriate time.
Leadership transition:
Kambi Group has appointed Werner Becher, former chief at Sportradar, as its new CEO, effective 25 July, a day after the release of Kambi’s Q2 2024 report. Becher succeeds Kristian Nylén, who announced his decision to step down in January. Following a comprehensive search process, Becher was chosen for his extensive experience in the sports betting industry and his background in the technology sector.
Kambi has recently embarked on a modularization strategy, opening up its platform, nurturing its AI-pricing division, Tzeract, and acquiring businesses like Abios and Shape Games to bolster its capabilities.
In line with its recent strategic intentions, Kambi’s Board of Directors has unveiled a capital allocation strategy aimed at returning capital to shareholders through share buybacks while ensuring sufficient capital is preserved for the company’s operational needs.
The newly announced strategy involves maintaining a minimum cash balance, which the Board will regularly review. This balance is essential for funding potential acquisitions and ensuring operational flexibility. The Board’s review will take into account the company’s working capital requirements and the necessity of maintaining an appropriate reserve for unforeseen events. Surplus cash above this minimum balance will be allocated to shareholders.
As a part of this strategy, the notice for the upcoming Extraordinary General Meeting (EGM) includes a resolution seeking authorization to acquire up to 10% of the total shares in the company. This buyback program is designed to return excess capital to shareholders, thereby enhancing shareholder value.
This transition marks a significant moment for Kambi Group as it adjusts its financial expectations and welcomes new leadership to guide its future growth and strategy.