This article first appeared on GuruFocus .
Release Date: July 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Kambi Group PLC ( KMBIF ) reported a 13% increase in Q2 revenue, with EBITDA doubling year-on-year.
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The company raised its full-year EBITDA guidance to EUR 23-27 million, driven by strong World Cup performance.
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Kambi Group PLC ( KMBIF ) expanded its market presence by signing partnerships with Canadian lotteries, Pure Casino in Alberta, and Ritabet in Spain and Peru.
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The company's AI trading system successfully managed the World Cup, processing over 100 million bets with an 18% operator trading margin.
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Operational expenses decreased, contributing to a significant increase in profitability, with adjusted EBITDAC rising to EUR 7.6 million from EUR 3.7 million last year.
Negative Points
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The company faced operational issues in April, resulting in credits that impacted financial performance.
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High operator trading margins could potentially suppress turnover in the short term.
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Cost of sales increased due to premium data costs associated with the World Cup, impacting overall profitability.
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The company is cautious about raising long-term sportsbook margin guidance despite recent high margins.
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There is uncertainty regarding the regulatory process in Wisconsin, which could affect future market entry.
Q & A Highlights
Q: Can you provide some understanding of the revenue and impact from the World Cup, specifically regarding invoicing and cash flow in relation to placed bets? A: Revenue is recognized based on when the bet is settled. If an event occurs before the end of June, it's recognized in June. The revenue is then invoiced to operators in July and paid within 30 days, typically in August. Therefore, cash from the World Cup will be received in July, August, and September. (Unidentified_3)
Q: With the reported higher growth in e-sports, how important will this vertical be for future growth? A: E-sports, particularly e-soccer and e-basketball, are significant for our business. E-sports is already our fourth-largest sport and continues to grow. We observed high engagement during the World Cup, indicating its importance and potential for future growth. (Unidentified_2)
Q: Regarding the 9.4 million standby letter of credit, why is it required by a new operator, and when will it be released? A: The letter of credit is a security measure for the operator to ensure our ability to settle liabilities during the contract term. It will be released once we no longer work with the operator. Historically, we haven't had such liabilities, so it's more of a safeguard. (Unidentified_3)
Q: Cost of sales keeps rising relative to revenue. Is anything other than data supply costs driving it? A: The increase is primarily due to data supply costs. The World Cup is classified as a premium data cost, which is recharged to operators. As ODSFED grows, data costs will appear higher, but all data costs are recharged, resulting in a net zero impact on the bottom line. (Unidentified_3)
Q: With the growing product mix of higher-margin products, have you considered raising the long-term sportsbook margin guidance? A: While we've seen extraordinary margins recently, we don't want to be reactionary. Historically, the margin averages around 11% over the last eight quarters. We will likely reassess this at the Q4 report when setting next year's numbers. (Unidentified_3)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
