In a strategic move to create added value for its shareholders, Kambi Group Plc has initiated a share buyback program, as was determined at the Annual General Meeting (AGM) held in June. The program will extend through to 21 May 2024, confirming Kambi’s commitment to enhancing shareholder returns and to allowing for more flexible capital structuring. This decision reflects a confidence in the company’s financial stability and the aspirations for future growth.
Carnegie Investment Bank AB has been tasked with the execution of the share repurchases. The transactions will be conducted, possibly over multiple instances, on the Nasdaq First North Growth market located in Stockholm, Sweden. Share prices for the repurchases will fall within a certain price range, details of which will be announced, though the company specifies that the aggregate cost will not surpass €2.8m. These acquisitions will be financed through cash payments.
Kambi presently has 31,278,297 issued shares. Under the terms of the buyback program, the company is authorized to repurchase up to 3,127,830 shares, representing a substantial 10% of the total issued share capital. Prior repurchase endeavors have left Kambi currently holding 657,992 of its own shares, indicating this is not the company’s first buyback venture.
The announcement surfaces after Kambi recently appointed co-founder Anders Ström as its new chair, following the departure of Lars Stugemo who provided almost a decade of service. Stugemo will remain active within the company’s Nomination Committee, while Ström is anticipated to be formally proposed for the chairmanship at the Kambi 2024 AGM, where his tenure will be put to vote.
Anders Ström’s administrative capacities are a natural extension of his historical involvement with the company. Prior to co-founding Kambi in 2010 with CEO Kristian Nylén, Ström was instrumental in the launch of Kindred Group in 1997. Besides his managerial roles, he has been a consistent presence on the Kambi board since the company’s inception, demonstrating his long-term dedication to the firm’s success.
Recent financial disclosures from Kambi revealed commendable performance for the third quarter. Despite the challenge presented by the loss of partnership with Penn Entertainment, Kambi reported growth across its various divisions. Revenues increased by 15% on a year-over-year basis, standing at €42.1 million for the period, with uplifts attributed to non-recurring fees connected to Penn and Shape Games agreements.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter rose 3% to €13.9 million, marking a slight improvement in profit margins to 11.0%. Additionally, a substantial surge in net profits by 34.6% culminating at €3.5 million further underscored the company’s robust financial performance.
The company’s strategic decision to commence a share buyback program comes at a time of financial prosperity and is a clear signal to both the market and its shareholders of both its confidence in its future and its commitment to maximizing shareholder value. The program allows Kambi not only to invest in itself by repurchasing its shares but also to potentially reduce the share count, which could lead to a rise in earnings per share and a stronger demand for the stock in the longer term.
By enhancing capital flexibility and directly returning value to shareholders, Kambi is reinforcing its market position and demonstrating a proactive approach to capital management. As Kambi continues to navigate the intricacies of the global betting industry, its latest managerial and financial maneuvers position the company strongly for both immediate and future opportunities.
