Kambi Targets €150M EBIT by 2027 with Algorithm-Driven Strategy

Kambi Group has unveiled its ambitious plan to achieve €150 million in operating profit (EBIT) by 2027. Central to this goal is a shift to algorithm-focused operations in its trading division, aimed at boosting efficiency and profit margins while reducing reliance on manual processes.

Transition to Algorithmic Trading
Deputy CEO Erik Lögdberg described the new direction as the “third generation of sports betting.” According to Lögdberg, the industry is currently characterised by human-led algorithmic processes. However, as data availability grows exponentially, Kambi plans to place algorithms at the forefront, reshaping workflows around them.

“We need to build processes around the algorithm itself so they can scale infinitely,” Lögdberg explained, adding that human intervention will only occur when algorithms face unresolved queries.

Chief Financial Officer David Kenyon acknowledged that this transition will increase short-term costs but expects it to deliver significant long-term savings.

Expanding into Key Markets
To meet its revenue goals, Kambi is eyeing untapped opportunities in markets like Brazil, the United States (Texas and California), and Asia (Japan or India). The company has already formed a strategic partnership with Brazilian fantasy sports operator Rei de Pitaco in anticipation of regulatory changes in the region.

CEO Kristian Nylén highlighted the importance of awaiting regulatory frameworks before entering new markets. For instance, in India, recent guidelines for online gaming issued by the Ministry of Electronics and Information Technology represent significant progress.

Modular Solutions for Major Operators
Kambi is diversifying its offerings with modular products like its “bet builder,” moving away from exclusively providing end-to-end sportsbook solutions. This approach targets collaboration with top-tier operators seeking to integrate third-party tools with their in-house systems.

Chief Commercial Officer Cecilia Wachtmeister noted growing interest from leading operators but refrained from naming specific partnerships.

Return to Outsourcing Trends
While vertical integration has been a prevailing trend in the industry, Kambi anticipates a shift back to outsourcing. Nylén attributed this to increasing regulatory and macroeconomic pressures, which make flexible and cost-efficient solutions more appealing.

“Tighter conditions in regulated markets and rising costs make outsourcing more attractive. Kambi offers flexibility by charging a revenue-based commission instead of fixed costs,” Nylén concluded.

With its focus on algorithmic innovation, modular product offerings, and strategic market expansion, Kambi is positioning itself as a leader in the evolving sports betting landscape. The company’s shift to outsourcing further aligns with emerging industry trends, potentially setting a new benchmark for profitability and efficiency.