Kindred Group’s in-house sportsbook “firmly on track” for 2023 test launch
Proprietary platform expected to deliver 500+ basis points of improved profit margin for operator’s betting business
Kindred Group’s under-construction sports betting platform remains “firmly on track” for a soft launch later this year, CEO Henrik Tjärnström reiterated to investors during the operator’s Q4 earnings call today, Tuesday 8 February.
Tjärnström said the target was to roll out Kindred Sportsbook Platform (KSP) in an unspecified market in late 2023 before a phased launch across dotcom markets in early 2024.
He explained that there had been “solid progress” so far and that the focus in 2023 was on finalising key product features, launch planning and obtaining certifications and regulatory approvals.
Kindred Group, which already has an in-house horseracing platform, will be migrating its sports betting offering from Kambi, which was spun-off from Kindred (then Unibet) in 2014.
“It’s about giving us complete control and flexibility to differentiate, respond and innovate in an ever-changing gambling landscape,” Tjärnström said.
“From a supplier security point of view, we have a complete reduction in risk of uncertainty with full platform ownership.”
He also pointed out that KSP will drive scalability and comes with a “robust financial model”, creating a significant sportsbook profit margin.
Kindred has been able to “attract top talent across the industry”, the CEO noted, and that the total headcount associated with the operator’s entire sportsbook offering stands at around 290 people.
The Stockholm-listed firm estimates KSP will achieve positive cash flow contributions in 2025 after a hitting the peak of investments into the project in 2023.
Decreases in total costs for the sports betting business after full implementation of KSP is anticipated to translate into more than 500 basis points (bps) of improvement in profit margin for the sports betting arm of the group.
Meanwhile, the platform is expected to contribute more than 200 bps to Kindred’s group EBIT margin after 2025.
Earlier today, Kindred announced that a “weaker than expected” Q4 contributed to full-year gross winnings revenue falling 15% to £1.1bn.