Kambi management told investors the sports betting tech provider is withdrawing its 2027 financial targets.
The release dropped early Thursday, leading to a 6.5% drop to 100 Swedish krona for the day. Kambi made some of that back Friday, closing at 102.8 Swedish krona.
Withdrawing the targets comes at a time of transition for Kambi. The company announced earlier last week that it was hiring Werner Becher to replace Kristian Nylén, who told the company in January he wanted to step down this year.
Sports betting targets announced in 2023
Kambi first announced its financial targets for 2027 at its Capital Markets Day in January 2023.
The expectation of revenue between €330 million and €500 million and more than €150 million in EBIT for 2027 was based on a number of assumptions, which included regulation in “certain key markets” and the “successful execution of its product strategy.”
Withdrawing the targets is the culmination of a board review process that started in February. The board will evaluate new targets with Becher and will be “communicated when appropriate.”
“The Board concluded that Kambi has made progress in areas within its control, however, slower than expected progress towards regulation in certain key markets would likely delay revenue from such markets,” the board said.
US sports betting expansion drags
While California and Texas are the two most financially tantalizing states left to legalize, Kambi is also waiting on a third state that could be key: Oklahoma.
In April, Kambi signed an exclusive agreement with the Choctaw Nation of Oklahoma. The deal has strong implications for Texas sports betting as well, given the tribe’s brand awareness in the state.
No timetable was given for when a product would go live, but the two are not necessarily waiting for Oklahoma or Texas to go live.
The partnership comes with “the ambition to become an online and retail sports betting powerhouse,” the release said.
Flutter interested in Boyd-Penn deal?
Penn Entertainment‘s stock popped once again Friday on speculation that the parent of FanDuel could be interested in Penn’s interactive assets.
Boyd Gaming has been linked to rumors concerning a Penn acquisition, though one clear question is what the company would do with the interactive segment. A subscription-only report from TheDeal.com suggested Flutter could buy those assets to help the deal along.
Penn’s stock closed at $19.62, up 4.7% on the day on lower-than-average volume. The stock is up more than 34% since the Donerail Group called for the company’s sale in a letter to the board May 31.
Boyd and Flutter have been business partners since August 2018. Boyd received 5% of FanDuel in exchange for sports betting market access.
EveryMatrix buys FSB
Online gaming software supplier EveryMatrix bought sportsbook tech provider FSB, SBC exclusively reported.
Terms of the all-cash deal were not disclosed. The deal, which was sought by FSB’s owner Oakvale Capital, closed July 4.
The deal bolsters its OddsMatrix product and will help the company “build on its best-ever financial year,” a spokesperson told SBC.
Deutsche Bank: CZR worth holding
Caesars is the top stock to hold over the next 12 months covered by Carlo Santarelli, according to the DB Fresh Money List third quarter report.
He has a $58 price target on the company, which closed Friday at $37.18.
The current price includes “little to no credit” for the interactive segment, he said. Any value added by digital only furthers his view that the core business’ valuation is attractive at current levels, Santarelli explained.
Santarelli listed four reasons why the stock could improve through Q2 2025:
- New casino amenity openings
- A potential share buyback
- Potential asset sales
- Synergistic acquisitions
