Kindred Group sees revenue increase by 20%
Kindred Group has reported a 20 per cent increase in pre-tax profit for the third quarter of 2018.
Gross winnings revenue amounted to GBP 230.7 (193.6) million for the third quarter of 2018, an increase of 19 per cent, and GBP 657.5 (513.4) million for the period January to September 2018.
Underlying EBITDA for the third quarter of 2018 was GBP 55.7 (46.8) million, and GBP 144.9 (110.5) million for the period January to September 2018.
“During the quarter, we reaped the benefits of the marketing investments made in the lead up to the World Cup, with active customers up 25 per cent compared to the same period last year. The sports betting margin was 8.5 per cent after free bets.”
“Gross winnings revenue increased by 22 per cent in constant currencies which means that we are continuing to gain market share. Gross winnings revenue from mobile grew by 24 per cent compared with the third quarter last year and amounted to 74 per cent of our total Gross winnings revenue. Of the Group’s Gross winnings revenue 42 per cent came from locally regulated markets.”
“Despite a 33 per cent increase in betting duties and marketing investments up 24 per cent this quarter, our underlying EBITDA grew by 24 per cent in constant currencies compared to the same period last year (+19 per cent in GBP), showing the scalability of our business model and our continued good cost control.”
“Last year the Group decided to enter the US market and after the US Supreme Court ruled against PASPA in May this year, we applied for an online license in the state of New Jersey. The USA is the world’s largest gambling market and we see it as a great opportunity for Kindred.”
“For the first 24 days of October 2018, the sports betting margin after Free bets was approximately 25 per cent higher than the long-term average of 7 per cent. For the fourth quarter of 2017 it was 50 per cent above the long-term average. Due to this lower margin, the daily average Gross winnings revenue in GBP in the period up to 24 October 2018 was 5 per cent lower (3 per cent in constant currency) than for the full fourth quarter last year,” says Henrik Tjärnström, CEO of Kindred Group.