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Kambi Group plc Q3 Report 2021

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Financial summary

  • Revenue amounted to €41.6 (Q3 2020: 28.1) million for the third quarter of 2021 and €127.5 (2020: 70.8) million for the period January to September, an increase of 48% and 80% respectively
  • Operating profit (EBIT) for the third quarter of 2021 was €14.7 (6.5) million, at a margin of 35.4% (23.3%), and €50.0 (10.0) million, at a margin of 39.2% (14.2%) for the period January to September
  • Profit after tax amounted to €11.9 (5.1) million for the third quarter of 2021 and €40.3 (6.8) million for the period January to September
  • Earnings per share for the third quarter of 2021 were €0.384 (0.164) and €1.302 (0.220) for the period January to September
  • Cash flow from operating and investing activities (excluding working capital movements and acquisitions) amounted to €11.9 (6.9) million for the third quarter of 2021 and €39.9 (8.2) million for the period January to September

Key highlights

  • Group revenue of €41.6 million, a 48% year-on-year increase, taking revenue for the first nine months of the year to €127.5 million, eclipsing the total for the whole of 2020
  • Acquired esports data and odds provider Abios, strengthening Kambi’s technology capability and transforming Kambi into a leading supplier of esports products and services
  • Expanded partner network with signings of Island Luck in The Bahamas and BetCity in the Netherlands
  • Continued expansion with on average one partner launch per week, including going live online on day one in Arizona, the 15th state in which Kambi has launched

“I’m pleased to report another excellent quarter for Kambi, with strong financial results against tough 2020 comparables, which is a testament to our robust business model and the hard work of our staff across the world. Kambi Q3 revenue was up 48% year-on-year, operating margin was once again strong at 35% and we continue to be highly cash generative. Excluding DraftKings, operator turnover was up 10% year-on-year, highlighting the underlying growth in the business.

We had a strong start to the new NFL season, which kicked off on 9 September, with our platform outperforming the competition and our market-leading Bet Builder product engaging a large number of bettors and returning higher average operator trading margin. Furthermore, revenue in Q3 was boosted by our continued US expansion, including day one launches in Arizona, the 15th state in which Kambi has launched. In total, Kambi completed approximately one launch per week on average throughout the quarter.

As we saw in Q3, M&A remains an ongoing trend in this industry, with the number of transactions featuring sports betting and gaming assets on the rise due to a growing appetite to invest in companies with highly sought-after technology. This illustrates the inherent value in proven businesses and supports a strong belief in future growth prospects in regulated markets across the world.

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On the subject of M&A, I was delighted to announce our acquisition of esports data and odds provider Abios during the quarter. We believe Abios is a great fit for Kambi, and its technology and expertise will enable us to create a first-class esports product that will diversify our revenue streams by capitalising on the opportunities presented by this fast-growing vertical. The acquisition is also in line with our longer-term strategy to further modularise our platform and, with a strong balance sheet, we remain in a good position to explore additional acquisition opportunities in the future.

As ever, Kambi is committed to creating the world’s leading sportsbook and we have spent more than a decade focused exclusively on the sports betting vertical, developing a core product that is near impossible to replicate. Whether it’s our ability to offer a great betting experience, being ahead of the curve in terms of regulation and compliance or having a wealth of network data at hand to effectively power the engine, Kambi has both the technology and expertise in place to deliver long-term success for our partners.

Of course, during the quarter we learned of Penn National Gaming’s decision to acquire theScore, a Canadian sports media company which owns a player account management system and plans to develop its own sportsbook. It’s incredibly difficult, as well as costly, to build, maintain, and continue to develop a first-class sportsbook, as we’ve seen with unsuccessful efforts of others in the past. In the meantime, we’ll continue to support their growth with our fantastic platform and service we have built over many years, which remains very much of interest to our growing list of prospective partners.

In summary, we’ve performed well, and the future looks bright. We currently have a sales pipeline as strong and varied as I’ve known it. As the global trend of regulation continues, we are in a great position to capitalise on future opportunities as and when they arise, and we have announced the implementation of a share buyback scheme.

Many of us at Kambi have been in this industry for more than two decades, during which time we’ve seen the sports betting market change markedly. This change is reflected in the evolution of Kambi, where we have built a business that thrives in regulated market conditions, grown to become a global leader, and partnered with major brands across the globe, many entering the space for the first time. This experience means we know what it takes to succeed and I am therefore excited by what the coming years hold for Kambi.”

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Top Online Casino Trends to Watch: Megapari’s Expert Analysis

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Top Online Casino Trends to Watch: Megapari’s Expert Analysis

 

The gambling industry is evolving rapidly, bringing new opportunities and challenges daily. To help affiliates maximize their earnings by focusing on what truly engages players, experts from Megapari discuss the latest trends and key developments shaping the future of the sector in their newest article.

Megapari Partners is an affiliate platform that welcomes traffic from more than 50 geographical regions. With revenue shares of up to 50%, as well as CPA and hybrid options, the platform boasts an active partner base of over 30,000 affiliates.

When discussing the evolution of online casinos, Megapari emphasized the ongoing growth in the popularity of crash games. Although the mechanics of these games are not new and have been recognized within the industry for some time, Megapari notes that their popularity continues to rise. Leading providers have adapted to the overwhelming demand for this category of slots by introducing their own variations of the crash game mechanics. Games like Aviator and Aviatrix have solidified their positions in the platform’s Top 5 most popular slots, combining high RTP with appealing graphics and captivating gameplay. Compared to Q4 2023, Megapari has observed an increase in the popularity of crash slots more than 60%, further confirming the hypothesis of the ongoing expansion of these types of games.

Additionally, Megapari’s experts point to the significance of the “retention” rate in clicker slots. These types of slots gained popularity during the first half of 2024, attracting players with their incredibly simple mechanics. While it may be too early to compare the popularity of clickers with that of crash games, Megapari believes that in the second half of 2024, the industry will likely witness further growth in this category of slots.

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When it comes to classic and well-known mechanics, roulette games remain among the top preferences for players. American and European roulettes—classic games with familiar rules—continue to attract players with their straightforward and well-known gameplay. Despite the fact that roulettes have long been a staple among popular and widely recognized slots, Megapari has noted an increase in the popularity of this category of games, demonstrating that the appeal of classic games should not be underestimated.

Beyond the games themselves, the hardware used by players is also advancing, leading users to seek out slots with superior graphics. More and more providers are focusing not only on game mechanics but also on enhancing gameplay with visually stunning and immersive slots, such as Medusa by Spinomenal or Heist: Bank Rush. Complex animations and vibrant icons attract players, enriching their gaming experience with greater variety.

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The Role of Adaptive Soundtracks in Player Engagement

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Video slot games have come a long way from their humble beginnings. Today’s gaming experience is not just about graphics or slot gameplay; sound has also taken center stage, adding depth and enhancing player immersion. One aspect that has emerged as a slot game-changer is adaptive soundtracks. These dynamic musical scores adjust in real-time based on the player’s actions, emotions, or in-slot game events. This innovation has significantly impacted player engagement, contributing to a more immersive and interactive gaming experience.

What Are Adaptive Soundtracks?

An adaptive soundtrack refers to a musical score that changes depending on what’s happening in a slot online game. Unlike static soundtracks, which play in a loop or remain the same throughout the slot game, adaptive music evolves as players progress through different levels or encounter specific challenges. The changes in the soundtrack can reflect various in-slot game elements like mood shifts, action sequences, or environmental changes, helping to create a seamless experience.

In simpler terms, adaptive soundtracks adjust to the slot game’s flow. If a player is in a high-stress situation like a battle or chase, the music might intensify to heighten the feeling of urgency. On the other hand, if the player is exploring a peaceful environment, the music may slow down or become more calming. This dynamic nature of adaptive soundtracks plays a crucial role in how engaged a player feels while playing.

How Adaptive Soundtracks Work

Adaptive soundtracks rely on a system that monitors in-slot game events, player movements, and environmental changes. Based on specific triggers, the music shifts to suit the atmosphere or slot gameplay. This can be achieved through a variety of techniques:

  • Layering: The slot game’s soundtrack is composed of multiple layers of music. Depending on the situation, different layers are added or removed to create the right mood. For instance, in a stealth slot game, the soundtrack may begin with a light, suspenseful melody, but as enemies approach, an additional layer of percussion or a faster rhythm may be introduced to increase tension.
  • Transitioning: In some slot gacor games, rather than layering, the music transitions between different themes. For example, when a player enters a combat sequence, the tranquil exploration theme may fade out and a more intense battle score takes over. The shift is smooth, ensuring that the player doesn’t feel disconnected from the slot gameplay.
  • Reacting to Player Inputs: Some adaptive soundtracks are directly influenced by the player’s decisions. In role-playing slot games (RPGs), where players make moral choices, the music may shift to reflect the emotional weight of those decisions. A heroic act may bring in uplifting music, while a villainous choice might introduce darker, more ominous tones.

Why Soundtracks Matter in Gaming

Sound is an often overlooked but essential aspect of gaming. Without it, slot games would lose a significant layer of immersion and emotional depth. Music sets the mood, adds tension, and can guide players through complex narratives without using words.

Enhancing Emotional Connection

One of the primary ways adaptive soundtracks contribute to player engagement is by enhancing emotional connections. The music in a slot game can evoke a wide range of emotions, from excitement to fear, sadness, and triumph. By adjusting the soundtrack to match the player’s experience, adaptive soundtracks ensure that the emotional impact of the slot game is felt more strongly.

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For example, in horror slot games, sudden changes in music can signal an impending threat, causing players to feel anxious or on edge. In adventure slot games, a soaring soundtrack during a climactic moment can make players feel empowered or inspired. This emotional engagement is key to keeping players invested in the slot game.

Maintaining Immersion

Another critical factor in player engagement is immersion. When players are fully immersed in a slot game, they lose track of time and become deeply involved in the slot game world. Adaptive soundtracks help maintain this immersion by creating a consistent and reactive audio environment that responds to the player’s actions.

If the music didn’t change to reflect what’s happening in the slot game, players might feel disconnected or disoriented. Imagine playing a slot game where the music remains calm and peaceful during a high-stakes battle; it would break the immersion and reduce the overall intensity of the experience. By constantly evolving to match the slot gameplay, adaptive soundtracks keep players in the moment, making every action and decision feel significant.

Increasing Replayability

Replayability is an important aspect of modern slot games, and adaptive soundtracks can contribute to this in a big way. slot games with dynamic music systems offer a fresh experience each time a player plays, as the soundtrack can vary based on different actions or choices. This variability can make players want to come back and explore different possibilities, knowing that even the music will change to match their new path.

For instance, in slot games with branching narratives, the music will adapt to the storyline the player chooses, offering a unique soundtrack for each playthrough. This keeps the experience fresh and engaging, encouraging players to revisit the slot game multiple times.

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Conclusion

Adaptive soundtracks have transformed the gaming experience by enhancing emotional connections, maintaining immersion, and increasing replayability. By responding to in-slot game events and player actions, these dynamic soundtracks keep players engaged and invested in the slot game world. As technology evolves, the role of adaptive soundtracks in player engagement will only continue to grow, offering slot gamers an ever-deepening connection to the virtual worlds they explore.

From iconic titles like The Legend of Zelda to intense shooters like DOOM, adaptive soundtracks are proving to be a vital component of modern video slot game design, making each gaming experience truly unique and unforgett

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SOFTSWISS Joins Pink October Movement

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SOFTSWISS Joins Pink October Movement

 

SOFTSWISS, a global tech company with over 15 years of expertise in iGaming, supports the global Pink October initiative to attract attention to preventing breast cancer.

This year’s Pink October campaign at SOFTSWISS is themed “A Minute Today, a Future Ahead” and emphasises the importance of early detection and preventative care. Breast cancer is the most common cancer affecting women, and early diagnosis is key in the fight against the disease. When it is noticed early, the 5-year relative survival rate is 99%.

Early detection involves doing monthly breast self-exams and planning regular clinical breast exams and mammograms. Half of the 2,000 SOFTSWISS employees are women, and the company will refund each of them for ultrasounds and mammograms in October and November.

Pink October at SOFTSWISS offers a wide range of activities throughout the month. In addition to reimbursing for medical examinations, an online webinar on mental health will provide valuable insights for those who face the disease. To support the international charity movement “Butterfly Support Mission”, women from SOFTSWISS will take part in a themed race.

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The company’s employees also personally support the initiative. To further raise awareness, prominent female influencers from the SOFTSWISS community share information about the campaign across social media, amplifying the message of self-care and vigilance.

“Health is a crucial value beyond everything. Here, at SOFTSWISS, we aim to help and support our employees’ well-being and health every day. By promoting the Pink October initiative, we want to stress the importance of well-timed self-care and make this issue visible both within the iGaming industry and beyond,” shares Chief Marketing Officer at SOFTSWISS, Valentina Bagniya.

Notably, the iGaming industry recognised SOFTSWISS’ strong dedication to ensuring the best working conditions for its employees. A few weeks ago, SOFTSWISS received the esteemed accolade “Employer of the Year” at the SBC Awards.

Supporting the Pink October initiative for the second year in a row, SOFTSWISS continues to lead by example, emphasising the importance of preventive health measures and community support. Through this initiative, the company hopes to inspire its employees and society to take action today for a healthier tomorrow.

 

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About SOFTSWISS

SOFTSWISS is an international technology company with over 15 years of experience in developing innovative solutions for the iGaming industry. SOFTSWISS holds a number of gaming licences and provides comprehensive software for managing iGaming projects. The company’s product portfolio includes the Online Casino Platform, the Game Aggregator with over 23,500 casino games, the Affilka affiliate platform, the Sportsbook software and the Jackpot Aggregator. In 2013, SOFTSWISS revolutionised the industry by introducing the world’s first Bitcoin-optimised online casino solution. The expert team, based in Malta, Poland, and Georgia, counts over 2,000 employees.

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