Betting solutions provider Kambi expects revenue for the fourth quarter of 2020 to fall between €46.0m and €48.0m, meaning full-year revenue could rise 27.6% to €117.8m (£106.3m/$114.6m), despite the suspension of sports for much of the year.
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Kambi’s revenue for the quarter was up around 76% year-on-year and came thanks to a particularly strong 9.4% trading margin, as well as continued momentum in staking growth.
Kambi’s expenses, meanwhile, were also up, at between €24.0m and €25.0m, and above guidance.
However, the supplier noted that the reason for this was predominantly due to higher costs of stock options due to strong performance of Kambi shares.
Kambi’s share price rose 34.3% during the quarter, ending the year at SEK393.4 per share.
Full-year expenses are set to reach around €105.3m.
This leaves expected earnings before interest and tax (EBIT) of between €21.0m and €24.0m, while full-year EBIT is expected to be between €31.0m and €34.0m, up around 120% from 2019.
The fourth quarter of 2020 saw the first full month of activity for the Kambi-powered Barstool Sportsbook from Penn National Gaming after a September launch.
Earlier this month, Kambi agreed a deal with the Netherlands’ largest private casino operator, JHV Gaming & Entertainment Group, which will allow the supplier to enter the Dutch online betting market when it opens later this year.
In the third quarter of 2020, Kambi reported record revenue thanks to the return of sports across the globe following the novel coronavirus (Covid-19) suspension.
