Sports Betting Helps Kindred Break £100m Barrier

The Kindred Group has reported its best-ever quarterly results. Strong sports margins helped the operator report EBITDA figures of over £100m

Unibet, a brand within the Kindred Group, helped the group achieve their best-ever quarterly figures. Revenue figures of £364.7m represent an increase of 54% on the Q4 results of 2020.

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Sports Betting Boosts Kindred’s Revenue © Pixabay.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), a measure used by analysts to gauge companies’ health, increased by 284% to £118m. This number represents the first quarter that the company’s EBITDA has broken the £100m mark, last year’s posted figure was £30.7m.

The results show a shifting the group’s customer base to online activity, driven by the coronavirus pandemic. The group’s Unibet brand was the standout performer with a 60% increase in revenues. Margins also saw an increase with a 10% margin after free bets, compared to an average of 8.8%.

Gaming revenue, led by Kindred brands including 32Red, Nordic brands Casinohuone and Kolikkopelit and female-focused Maia Casino, increased by 49% when compared year-on-year.

Kindred Q4 2020 revenue by product:

  • Pre-game betting – 27%
  • Live betting – 22%
  • Casino – 47%
  • Poker – 2%
  • Other – 2%

The company also revealed that the number of active monthly customers had also increased by 11% to 1,781,617.

On the results, Kindred Group CEO Henrik Tjärnström said: “I am pleased that we can finally put 2020, a difficult year for most people, businesses and countries, behind us. It has certainly been a year we will all remember. “At Kindred, we have successfully managed to navigate these uncertain times and have continued to attract customers who enjoy a safe and entertaining gambling experience, resulting in several new all-time highs this quarter,” Tjärnström added.

The Q4 results also show how the three main operating regions are performing.

Western Europe, which includes the UK market, showed the highest growth rate. Revenue growth was up 58% for this region. The Eastern Europe region, whose brand is Vlad Cazino (Romania) saw an increase in revenue of 53%. The Nordic region, serviced by Casinohuone and Kolikkopelit, and high-roller focused Storspiller brand saw a growth of 15%.

The 2% ‘other’ figure in the reporting refers to the group’s expansion into the potentially lucrative US market. Kindred has already secured access to allow gambling products in 12 states, and the group expect to go live in as many as six of these by the end of the year. America is likely to be a focus market for the group for the short and long term with expectations that it will replace Western Europe as the main source of income within the next few years.

Although operations are not fully developed stateside, the US market’s revenue increased from £1.7m to £23.8m. This figure does represent an EBITDA loss of £5.7m, due to costs of operations, including marketing.

Kindred Group has also stated that they expect 2021 to show sustained growth for the company. Trading already for the first 38 days shows a revenue increase of 41% than the same period last year.

As we reported in an earlier article on the Kindred Group, they have committed to reducing the group’s income from problem gamblers to 0% by the end of next year.

Shares of the Kindred Group were up by 11% on publication of the Q4 trading figures.

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