Solid Market Growth Helps Propel Kindred Group In Q3

This week, solid growth in controlled markets and diligent cost control have helped propel Kindred Group, an online gaming operator, towards a glowing collection of Q3 figures.

The business, which defines the US sports betting industry as a ‘key investment sector,’ cited gross revenue of $369 million ($297 million in 2019), a 24 percent rise. Underlying EBITDA amounted to $98.1 m ($49 m 2019), while profit before tax was $79.1 m ($28.1 m 2019). At $69 m ($23.1 m 2019), post-tax income came in.

Investors were advised by CEO Henrik Tjärnström: “Reflecting on the past six months, it is evident that societies across the world continue to struggle as a result of the COVID-19 pandemic. Despite these challenges, and thanks to our diverse business model, I am pleased that we can report sustained momentum across our markets with gross winnings revenue of GBP 280.7 ($369m), a 24 percent increase compared to the same period last year, and an all-time high in active customers.”

On the state-side business of the organisation, he added: “The US is a key investment market where our team have been working hard to go live in our third state, Indiana, during the quarter. We are now pushing forward to launch in Illinois and Iowa in 2021, along with more states in the pipeline.

“It is encouraging to see the continued strong growth in the US, with the market share in Pennsylvania reaching above 5% during the third quarter. With New Jersey and Indiana also growing steadily, I expect the US to become one of Kindred’s largest markets during the next couple of years.

“As with all market entries, the initial investment phase is focused on building our customer base and, as a result, the US market has seen revenue negatively impacted by big bonus campaigns during the second half of the quarter, but still grew 22 percent sequentially.”

On the sportsbook front, the CEO also welcomed a return to form, saying: “The finalisation of the previous season’s sports leagues combined with the start of the new season resulted in a strong sportsbook activity, albeit with a slightly lower sportsbook margin of just over 8 percent for the quarter.

“It is also promising that the strong activity levels for other products have sustained. With the return of major sports leagues across the world, and the ongoing shift from offline to online, our active customer base grew by 19 percent compared to the same period last year. Other contributing factors are the great efforts made to enhance customer experience and high customer satisfaction scores, both important as we expand our locally regulated footprint.”