Stockholm-listed Kindred Group Plc has announced that both low sports betting margins and the costs of its growth activities in the US have hindered its gross winning sales for Q4 2019.
As reported in a pre-market update, Kindred clarified that its projected sales for the final three months of 2019 will be in the area of £235m, representing a decrease from £250m in the same time frame in 2018.
Elsewhere, corporate governance highlights profits expected to reach about £27m-£32m, down from £58.5 m as of Q4 2018.
Yet amid predictions of lower sales and profits, Kindred announced that the quarter’s active customers were 1.6 million, a rise of 2 percent compared to the same quarter last year.
The regulatory climate in Sweden’s home market had an impact on Kindred’s bottom line for Q3 2019, but the company remained optimistic as it stressed that ‘performance in Sweden improved significantly compared to prior quarters.’
Kindred also faced fines from the Dutch gambling regulator Kansspelautoriteit (KSA) which levied penalties worth a combined €.5 million (£3.0 million) in 2019–an increase of 105.8 percent compared to the previous year.
The fines included a € 470,000 penalty levied against the Trannel International subsidiary of Kindred for providing online gambling services without the requisite licence to consumers in the region.
The competitive global market, the company said, means Kindred’s management ‘will continue to implement a number of additional operational efficiency initiatives to ensure that the group can deliver growth in revenues and underlying EBITDA in 2020 compared to 2019.