Kindred Group’s Revenues and Profits Surge in Q1

The Kindred Group has seen a surge in profits as revenues increase by 41% in Q1 of 2021. The Group’s UK brands saw an uptick of over 100% from last year’s figures.

company results

Kindred Group’s Profits Surge in Q1 ©Pixabay.

The Kindred Group has seen a significant jump in profits, up 41% from Q1 results in 2020.

The company has released its financial results for the first three months of 2021, which show gross winnings revenue increased to £352.6m.

Revenue from markets regulated at a local level has reached £209m, an increase of 39%, and represents 59% of the group total.

Kindred’s UK facing brands, Unibet and 32Red, performed exceptionally well, with a doubling of profits compared to 2020 figures.

Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA), a metric used to evaluate a company’s operating performance, increased to £98m from £42.5m, a jump of 131%. These figures show an underlying EBITDA margin of 28%.

The figures show a remarkable increase in profits after tax. In 2020, the company declared profits of just £1m after tax and other liabilities. The 2021 figure of £72.6m represented an astronomical rise of more than 7,000%.

Henrik Tjarnstrom, the CEO of Kindred Group, said on a webcast covering the Q1 Report presentation that the improved figures were due to a strict focus on cost control and scalability.

Tjarnstrom stated that the only downside in the results was an increase in foreign currency losses. In 2020 the company’s losses in foreign currency stood at £1.8m; this increased to £8m in 2021.

Turnover from sportsbook grew 49% year-on-year, and the margins from these operations stood at 9.4% after free bets. Kindred state that sports betting accounted for 45% of total revenue in Q1, with casino and gaming revenue responsible for 50%.

Kindred stated: “As the group has significant cash balances in foreign currencies, and foreign currency rate movements were substantial, the impact was unusually large during the quarter,”

Breaking the results done to geographical regions, Western Europe represents the Group’s biggest market, with 69% of total revenue created in that region. The Nordics region generated 19%, Central, Eastern and Southern Europe (CES) 8% and 4% in other regions.

The company revealed that there was year-on-year growth in all regions. Nordics increased by 1%, Central, Eastern and Southern Europe 33% and West Europe 58%. The biggest growth was away from their usual territories, with ‘other’ seeing a growth rate of 91%. This category covers emerging markets such as the US and also Australia.

The company states that the UK is the largest regulated market globally, and the total UK online market is estimated to have been worth around £8bn in 2020. Kindred say they have outgrown the UK market by almost 3x. They add that the UK has been a long-term investment market and that the acquisitions of Stan James and 32Red have laid the foundations for accelerated organic growth.

The company also reported an increase in activity in their user base. A figure of 1,818,759 in the first three months of 2021 is up from 2020’s reported number of 1,531,302.

Tjarnstrom said: “The positive momentum from 2020 has continued into 2021 across our markets and product segments,” “We ended 2020 with a new all-time high in active customers, and I’m pleased to see this trajectory continuing into the first quarter of 2021 with a new active customer record of over 1.8 million. It’s particularly encouraging as we look forward to an exciting year of sport ahead.

“Our focus on sustainable growth in locally regulated markets is proving effective, with Kindred gaining market share in many markets, including the UK, despite it being a mature and highly competitive market,” Tjarnstrom added.

The company are also expecting an improvement in Q2 figures. In the first 25 days of trading in Q2, daily revenue was 52% higher than in 2020. This increase is largely due to sporting events being cancelled during Q2 last year.

Have you enjoyed this article? Then share it with your friends.
Share on Pinterest
company results

Similar Posts