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SportsTranscript
00:00Matt, thanks for coming back here on the show, and let's start off with a company, an upstart
00:07company that has performed very well called Camby, which is responsible for a lot of the
00:13different operations in different sports books and technology.
00:16What is the story here, Matt, though?
00:17They have changed a little bit of their projections for the future.
00:21Why make this announcement, by the way?
00:22Is that just happens on stock calls?
00:25Yeah.
00:27First of all, Craig, they made this call at the beginning of 2023 to talk about, to forecast
00:32what they would earn in 2027, basically.
00:35They said upwards of 500 million euros in revenue and more than 150 million in EBIT.
00:42That's your earnings before interest and taxes.
00:45It was kind of interesting to see that they would announce four years out like that, but
00:49I think it was necessary at the time for Camby.
00:52Camby was coming off of a 2022 where they lost DraftKings as a customer, and they knew
00:58going into 2023 that they were going to lose Penn Entertainment as a customer, who was
01:03partnered with Barstool, now with ESPN back.
01:07I think they wanted to give some support to the stock and throw some certainty and security
01:15behind the stock by saying, look, this is what we still expect.
01:18There's still a lot of big markets out there to legalize, and the company is going to be
01:23just fine, even if we have to go with smaller guys.
01:26Well, they don't think that anymore.
01:28They said that basically California, Texas, other states, it's just happening too slowly
01:34at this point for them to reach those targets by 2027, and they have to do that, Craig.
01:40When you say that you had forecasts, when those forecasts change materially, you have
01:46to let the stock market know Camby is traded in Stockholm, and so that basically is why
01:51they had to come out and say this.
01:53It wasn't a huge hit for the stock.
01:55It fell like six and a half percent that day, made a little bit back up on Friday.
02:00This was announced last Thursday.
02:02Look, Camby is an interesting name for sports betting customers in the U.S.
02:07to be aware of.
02:09Camby, like I said at the beginning, they were kind of setting partners with everybody
02:13because they're a European-based sports betting technology company that knows what they're doing,
02:19frankly, but it turns out that it is cheaper in the long run for these sports betting companies
02:26to get their own technology, whether they have to build it out and invest in the development
02:35of that, or they just go out and buy their own.
02:38Eventually, those numbers are going to be positive for them on owning their own technology
02:43instead of paying these monthly fees and the revenue share and everything that comes
02:47with having a third-party partner like that.
02:51So Camby is interesting because you think about they signed a big deal with the Choctaw
02:58Nation to be in not just Oklahoma, they have a presence in Texas.
03:03They signed it as a nationwide deal.
03:05You think about all of the tribes in California, whenever California sports betting does kick
03:09off, they don't necessarily want to be in bed with the big boys because it costs too much.
03:13That's where Camby can come in and say, hey, throw your brand on this.
03:17We have the technology, just have some people to run it.
03:22So I don't think anybody knows exactly what Camby is going to be in 2027 at this point,
03:28but it became evident to them that they had to throw those numbers out and give the market a reset.