Anders Ström, Kambi's Chairman, and Kristian Nylén, the Group CEO, spoke about the brand’s results in 2023, a strategically important year. The period was marked by progress and a complete modernisation of the company’s business model.
The Main Achievements of the Provider
Speaking to investors, the executives noted several significant accomplishments for 2023. For instance, the studio received revenue of € 173.3 million. Such a high financial indicator was achieved due to optimising and expanding the line of proprietary betting products.
Now, the Stockholm-listed provider’s main task is to make the wagering technology department as efficient and appealing as possible for new investors.
Mr Ström noted that the company’s current corporate governance format demonstrates its decision to abandon the classic Swedish model with a detached Board of Directors. For several years, the studio has strictly followed the plan to make the council more active and engaged.
Kambi’s experts consider such a transformation a natural stage in strategic development. These changes led to the expansion of the management team.
The following specialists joined the Board:
- Kristian Nylén;
- Benjie Cherniak.
Mr Ström mentioned that both members are people with impeccable industry competence. With their assistance, the company can win the trust of the annual public meeting’s visitors. The Chairman is confident that in 2024 and beyond, Kambi will work even more effectively under such a leadership.
Changes to the Corporation’s Board of Directors
Despite a significant 14-year contribution to the enterprise’s development, Mr Nylén expressed his intention to resign as CEO in January 2024. The head’s responsibilities will be immediately transferred once a successor is confirmed.
Mr Nylén is also Kambi’s Co-Founder and has been with the company since 2010. Under his leadership, the brand has earned a reputation as one of the top suppliers in the industry.
The corporation’s client list currently includes 40+ renowned brands, including:
- RSI;
- LeoVegas;
- Kindred Group;
- Bally's Interactive.
Meanwhile, Mr Ström took over the duties of Chairman after Lars Stugemo left in November 2023. He believes the Board’s main task in 2024 is to find a worthy successor to the CEO.
Financial Achievements of the Company
Analysing the volume of trade deals for the last year, Mr Nylén said that the organisation’s sportsbook network has been significantly strengthened and expanded. About 10 new associates joined the range, including LiveScore and Svenska Spel. The specialist considers these landmark agreements an excellent demonstration of Kambi’s commercial strategy effectiveness.
The developer has created personalised offers for each partner, for instance:
- The Bally’s brand was granted some components of Kambi’s source code.
- Svenska Spel received a platform with a tailored interface from Shape Games.
From a financial point of view, the company has shown steady growth throughout 2023. The provider managed to increase revenue by 13%. The earnings amounted to € 173.3 million, excluding a one-time fee for terminating the contract with the Penn brand in Q4 2022.
Commenting on the financial achievements of the year, Mr Nylén noted that the total figure did not meet initial expectations.
Many factors affected the profitability numbers, including:
- lower than planned earnings from Shape Games;
- lesser than stated contributions from the 2 largest partners.
The expert is sure that challenges will always exist. Now, the company has to artificially slow down its ambitious global expansion program due to the lengthy opening of new markets. Nevertheless, the strategic progress that the studio achieved in 2023 has become a solid foundation for future large-scale breakthroughs.
The main task of Kambi’s Board now is to increase the enterprise’s benefits for shareholders. Mr Nylén claimed that the council must prioritise budget allocation and improve the effectiveness of the share buyback system. This approach will create added value for investors and make the management structure more flexible and scalable.
Last year, the studio purchased back 462,076 securities for € 8.3 million, 1.5% of the company’s overall assets.
Kambi’s Development Strategy in 2024
In 2023, the provider successfully launched 60+ sportsbooks in markets, like:
- the US;
- Latin America;
- Europe, etc.
The enterprise also fully repaid its convertible bond debt of € 7.5 million. This action allowed it to gain complete control over deploying future offers. This year, the supplier aims to exceed those results.
Mr Ström is confident that 2024 is a turning point for his corporation. The changing nature of global industry regulation opens up new opportunities for the enterprise’s growth. The only task here is to see and use them in time.
Regarding global technological trends, the provider’s capabilities are currently focused on a deeper study of artificial intelligence technologies. The supplier’s portfolio already includes several machine-learning models, and corporate specialists constantly strive to improve these solutions.
The Chairman is excited about the mass adoption of AI tools in various business aspects. He is confident that branded developments in this sector will lead to record efficiency in all divisions and positively impact future productivity and profitability.
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