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Kambi in Brief Financial Update Product Development

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Page 1: Kambi in Brief Financial Update Product Development
Page 2: Kambi in Brief Financial Update Product Development

Kambi in Brief

Quarterly Highlights

Trading Analysis

Financial Update

The World Cup & Events after Q2

Product Development

The Market

Conclusion

Q&A

Page 3: Kambi in Brief Financial Update Product Development

Premium turnkey sports betting solution for

all channels

11 fully serviced customers

Our customers are

outperforming the market

Proprietary System

Intellectual Property

Scalable Model

Our business model and experience

position Kambi for further growth

Page 4: Kambi in Brief Financial Update Product Development

2 New customers signed

97% Revenue increase

European State Lotteries & Toto Association member

3 Customers launched

Successful World Cup - strong offering and stability

Page 5: Kambi in Brief Financial Update Product Development

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

0

25

50

75

100

125

150

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Operator Turnover and Margin

Turnover Index (Q1 2014=100) Betting Margin %

Page 6: Kambi in Brief Financial Update Product Development

Q2 9.5m +97% YTD 17.2m +84%

Operating profit

Revenue

Q2 0.8m, 9% margin YTD 0.7m, 4% margin

Cash flow

Q2 1.0m YTD 1.0m

Page 7: Kambi in Brief Financial Update Product Development

EUR m

Revenue

Operating expenses

Result before items affecting comparability:

Amortisation of acquired intangible assets

Transaction costs

Result from operations

Q2

2014

9.5

-8.1

1.4

0.0

-0.6

0.8

Q2

2013

4.8

-6.8

-2.0

-1.5

0.0

-3.5

H1

2014

17.2

-15.9

1.3

0.0

-0.6

0.7

H1

2013

9.4

-13.6

-4.2

-3.2

0.0

-7.4

Page 8: Kambi in Brief Financial Update Product Development

-15,000

-10,000

-5,000

-

5,000

10,000

15,000

20,000

25,000

Opening cash Operating cashflow

Capitalexpenditure

Repayment toUnibet

Equity issue Convertibleissue

Closing cash

EUR ‘000

Page 9: Kambi in Brief Financial Update Product Development

Strong operational performance

Earnings growth

Robust balance sheet

Page 10: Kambi in Brief Financial Update Product Development

A unique offering driven by end-

user entertainment value proved

to be very successful

Page 11: Kambi in Brief Financial Update Product Development

dg

July and August seasonally slow months, the major

European football leagues start in mid to end August

August – World Championships in Basketball

Strong start to Q3 with 10 remaining World Cup matches

888 soon to launch the Kambi sportsbook in Spain

Page 12: Kambi in Brief Financial Update Product Development

First version of OTC terminals launched

Terminals are operational with NagaWorld and Iveriabet

The addition of OTC terminals strengthens Kambi’s retail

portfolio and opens up new markets

Page 13: Kambi in Brief Financial Update Product Development

European online sports betting development

Short term, Kambi’s focus is to grow in Europe

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

European online sports betting gross win development (EURbn)

Source: H2 Gambling Capital Jan -14

Page 14: Kambi in Brief Financial Update Product Development

Re-regulation across Europe continues: UK Q4 2014

and the Netherlands to follow mid 2015 earliest

Positives: Access to new customers and improved

marketing opportunities for existing customers

N Negatives: Commission affected by higher betting duties,

increased compliance and technical complexity

Page 15: Kambi in Brief Financial Update Product Development

Record revenue boosted by the

World Cup

2 new customers signed

Positioned as a premium supplier

Page 16: Kambi in Brief Financial Update Product Development

Thank you for your interest