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Kambi Group plc Q3 Report 2022

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Financial summary

  • Revenue amounted to €36.7 (Q3 2021: 41.6) million for the third quarter of 2022 and €108.2 (2021: 127.5) million for the period January to September of 2022
  • Operating profit (EBIT) for the third quarter of 2022 was €3.9 (14.7) million, at a margin of 10.6% (35.4%), and €16.1 (50.0) million, at a margin of 14.9% (39.2%) for the period January to September of 2022
  • Earnings per share for the third quarter of 2022 were €0.084 (0.384) and €0.370 (1.302) for the period January to September of 2022
  • Cash flow (excluding working capital and M&A) amounted to €1.8 (11.9) million for the third quarter of 2022 and €7.3 (39.8) million for the period January and September of 2022

Key Q3 highlights

  • Operator turnover increased by 12%, driven by new partner signings and market launches
  • Expanded the partner network in the Americas with four new signings of ilani, Mohegan, Oaklawn Racing Casino Resort and Ondiss
  • Acquired front end specialist Shape Games, a profitable and fast-growing business that will provide Kambi with market-leading native front end technology

Highlights after Q3

  • Partnered with Great Canadian Entertainment, a leading on-property gaming and entertainment company owned by an affiliate of Apollo Global Management
  • Signed agreement with PENN Entertainment that provides for ongoing revenue share payments during the transition period and $27.5 million in early termination and transition fees

“The third quarter is always the most challenging for the sports betting industry given the quiet sporting calendar and this year was no exception. It was also a quarter marked by growing global economic uncertainty and higher cost of living, trends which show little sign of subsiding any time soon. Despite this, Kambi proved its resilience once more and I am pleased to report another busy quarter for the business with operator turnover growth of 12%.

Kambi also saw great commercial momentum during the quarter with the signings of ilani, Mohegan, Oaklawn and Ondiss, and with the recent signing of Great Canadian Entertainment, one of Canada’s largest on-property gaming companies, Kambi’s partner network was significantly strengthened. Owned by Apollo Global Management, which holds a number of gaming assets, Great Canadian has the potential to become a major player in the Canadian sportsbook market and its selection of Kambi underlines our position as the partner of choice in the Americas.

Our UX capability was also enhanced during the quarter with our acquisition of front end specialists Shape Games. This is a landmark deal for Kambi for many reasons. Crucially, it gives us the fully-fledged, native front end capability at a time when the front end experience is a more vital part of the sports betting value chain than ever before. Having worked closely with Shape Games on various projects in recent years, I have seen first-hand the strength of their technology and the level of expertise they possess, and I am pleased to welcome such a profitable and rapidly growing business to the Kambi Group. The acquisition will not only complement our turnkey solution but it also aligns with our modularisation strategy with the front end module set to be sold as a standalone service outside of the existing network, thereby increasing our total addressable market.

We continue to make great strides towards executing our modularisation strategy and can reveal that our award-winning Bet Builder, which recently launched for NBA, the final major US team sport to be added to the product, has been identified as the first standalone module we’ll go to market with. Unlike our key competitors, Kambi’s Bet Builder was created as part of the core sportsbook, thereby benefitting from our expertise in areas such as competitive pricing, unique user experience and risk management, creating a compelling product for operators to integrate.

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Our future is looking promising, operating from a strong position as we enter an economic recession which, while it will no doubt present challenges, may prove positive for B2B businesses such as Kambi in the long term. When also taking into consideration the recent start of the US basketball season and a World Cup still to come, we look forward to ending 2022 on a high before embarking on an exciting 2023.”

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Erik Londré CEO of Karta

NASCAR unveils first step into the Fortnite ecosystem with custom Rocket Racing tracks inspired by its iconic events and venues

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Today, NASCAR, America’s most popular motorsport, has officially entered the Fortnite ecosystem – announcing its debut with a one-of-a-kind, high-octane racing experience built in Rocket Racing.

Developed in partnership with award-winning UK metaverse studio, Karta, the experience launches with a Chicago Street Course map, styled on the real NASCAR Chicago Street Race taking place this Sunday 7th July, merging the thrill of NASCAR racing with the dynamic creativity of the Fortnite ecosystem.

With the first Chicago Street Map, players navigate multiple routes, master the art of speed, drift and avoid obstacles in intense multiplayer races or solo time trials.

Debuting ahead of the real-life Chicago Street Race, NASCAR’s official launch on Fortnite brings its second annual event in the center of one of the world’s greatest cities, into the Fortnite world. The map gives NASCAR fans, and players of all levels who may have never interacted with the sport, the chance to get closer to the real event than ever before – setting it apart from typical Rocket Racing maps.

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With this fun experience aimed at gamers of all levels, NASCAR’s move into the Fortnite ecosystem isn’t just a one-time event while the Chicago race takes place. NASCAR is setting its sights on a permanent fixture on the platform, with the Chicago map marking the start of a long-term racing experience for players to continuously visit. Looking ahead at the NASCAR calendar, fans of America’s No. 1 form of motorsports and the Fortnite community can get excited, as NASCAR eyes wider plans to add more virtual recreations on the platform.

“NASCAR has always been about pushing boundaries and connecting with fans in exciting ways,” said Nick Rend, Managing Director of Esports & Gaming at NASCAR. “Fortnite provides the perfect platform to engage a global audience, blending the intensity of NASCAR racing with the immersive world of Fortnite. Karta, with their incredible creativity, attention to detail and innovative approach, were the perfect partners to help us bring this vision to life. We wanted to build something with longevity for both diehard NASCAR enthusiasts and the wider Fortnite community and we think we have succeeded with just that.”

Erik Londré, CEO of Karta, added, “Working with an icon of motorsports like NASCAR  has been a dream come true. Our goal was to capture the essence of NASCAR racing – the speed, the strategy, the adrenaline – and inject it with a dose of Fortnite fun. The result is something truly special – a high-octane, visually stunning racing experience that we know players will love.”

Karta is an award-winning metaverse studio renowned for creating engaging virtual gaming experiences for global brands. Karta has established itself as a leader in creating accessible and impactful brand experiences within the metaverse across gaming, music and esports.

Since its inception in July 2021, Karta has collaborated with a diverse range of global brands, including Nicki Minaj, BLACKPINK, TWICE, Amazon Music, McDonald’s, Spotify, and Hugo Boss, solidifying its position as a trailblazer in the ever-evolving landscape of metaverse entertainment.

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Industry Leaders Voice Strong Backing for SBC Summit Americas in Fort Lauderdale

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The announcement of the SBC Summit Americas has garnered widespread support from industry leaders. The reimagined event aims to increase connectivity across North, Central, and South America, forming a single, cohesive platform for the gaming industry throughout the region.

Set to take place in Fort Lauderdale on May 13-15, 2025, the summit is poised to offer broader networking opportunities and drive forward collaboration within the industry.

Peruvian operator Apuesta Total shared their excitement about the location. “I always enjoy a change of scenery, and Fort Lauderdale is a fantastic choice. Many people like to turn conferences into extended weekends, so I’m certain attendees will appreciate the city’s beautiful beaches and vibrant atmosphere,” said company CEO Gonzalo Perez.

Relationship marketing hub Optimove’s VP of Revenue, Motti Colman, shared his thoughts on the potential of the new-look event. “With 8,000 attendees expected, this event is off to an excellent start. I am also keen on exploring new market insights through market-by-market conference sessions, so I am confident this is a great platform for expanded opportunities.”

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Better Collective, a leading affiliate powerhouse and a frequent presence at SBC events, not only attending but also contributing as exhibitors, sponsors, and speakers, expressed their confidence in SBC’s potential with this revamped event.

“At Better Collective, we look very much forward to the SBC Summit America 2025 in Fort Lauderdale. With years of proven expertise in event organization, SBC enables unparalleled networking opportunities under one roof, reinforcing our connections and partnerships within the industry,” said Marc Frank Pedersen, company CEO for North America.

He added: “Having worked with SBC for many years, we trust in SBC’s commitment to deliver events that not only meet but exceed our expectations.”

Joseph Martin, CEO of Kinectify, a company specializing in anti-money laundering and compliance software, who has previously exhibited at SBC Summit North America, backed the decision, expressing confidence in SBC’s industry-centric ethos.

“SBC always puts on great events. They have deep connections within our industry and prioritize the right elements to optimize our experience. I’m excited about this new show covering both North and South America. Gaming companies operating in multiple markets across the two continents now have a single event focused on the entire Americas region. I look forward to another outstanding SBC event experience in Fort Lauderdale.”

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FanDuel CEO, Amy Howe, commented on the growth that SBC Summit North America had previously achieved under SBC’s leadership. “The SBC North American Summit has become a mark the calendar industry event each spring. The conference seems to grow each year and brings together an impressive array regulators, legislators, operators and technologists that help power the industry’s growth.”

The CEO also confirmed that the “company is delighted to participate in the conference each year and looks forward to 2025 in Florida.”

Marina Bogard, Managing Director for North America at Betsson, also emphasized that the event caters to companies with diverse geographic interests. “SBC’s decision to launch SBC Summit Americas and host the event in Fort Lauderdale, Florida, provides a convenient opportunity for businesses with diverse market strategies to connect with both North American and Latin American leads under one roof.”

Bogard underscored the significance of this unified approach, which allows Betsson to efficiently engage with partners across diverse regions. “As you know, Betsson is a global company, and both regions remain highly significant for our expansion strategies. It is great to be able to align our efforts and meet all our partners across the Americas without having to attend multiple conferences,” she said.

Colman remarked: “SBC clearly has foresight in creating SBC Summit Americas for 2025.” Just like Bogard, he also recognized the event’s appeal to companies serving multiple geos. “At Optimove, we have experienced incredible growth in North and South America that parallels the incredible growth of SBC in each region. This new, reimagined show underscores that iGaming has come of age in the Americas. Plus, it will greatly benefit iGaming operators and service providers with diverse market interests.”

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Perez echoed this sentiment. “We can all agree that the industry juggles numerous commitments, especially concerning conference participation. While attending expos around the world is rewarding, it also presents logistical and financial hurdles for companies. Therefore, I really embrace the idea of combining the strengths of the SBC Summit North America and Latinoamérica events to create a larger, more networking-rich experience,” he said.

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ACR Poker

ACR POKER GETTING PLAYERS WARMED UP FOR DUAL VENOM TOURNEYS WITH $1 MILLION GUARANTEED VENOM WARMUP

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The $8 Million Mystery Bounty Venom and $2 Million PLO Venom are coming to ACR Poker in August. Now, the popular online poker site is getting players warmed up in a big way with the $1 Million guaranteed Venom Warmup starting Sunday, July 7th.

The Venom Warmup tournament has a $1 Million guaranteed prize pool and a buy-in of just $55. There are even paths for players to qualify for free, making it even more of a bargain.

“We’ve never run a tournament before that had this large a guarantee for such a small buy-in,” stated ACR Pro Chris Moneymaker. “We hope everyone takes advantage as it’s the perfect lead-in to our dual Venom tourneys running in August.”

The $1 Million Venom Warmup has 192 total Day 1 flights from July 7th to 28th, providing almost unlimited options. Day 2 will take place on Sunday, July 28th at 4:05pm ET and the Final Table on Monday, July 29th at 2:05pm ET.

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Moneymaker went on to add that one of the interesting things about this tourney is players can compete in multiple Day 1’s and combine their chip stack.

Alongside the Venom Warmup, ACR Poker is running its Venom Fever satellites, designed to provide players with hundreds of affordable opportunities to secure their $2,650 seats to the $8 Million Mystery Bounty and $2 Million PLO Venom tourneys coming in August. Highlights include 900 guaranteed seats for the Venom Mystery Bounty and 100 guaranteed seats for the Venom PLO via satellites

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