Kindred Group Q3 revenue rises 24% on sports bounceback
Third-quarter sports betting revenue hits £120.9m as French market returns to pre-Covid levels
Kindred Group has reported a Q3 revenue jump of 24% to £280.7m after top-tier sport made a major comeback from Covid-19 cancellations and postponements.
Underlying EBITDA leapt 100% to £74.6m, up from £37.3m in the prior corresponding period, as active customers for the quarter rose by 19% to reach an all-time high of 1,650,153.
Third quarter profit after tax amounted to £52.5m amid an annual rise of 66% as net debt topped out at £2.2m, significantly reduced from the £61m position reported at the end of Q2 2020.
The strong figures were primarily driven by the return of sporting events as sports betting gross winnings revenue reached £120.9m for Q3 2020.
Q3 sports betting turnover grew by 21% year-on-year as sports betting in France returned to pre-Covid levels.
This supported a 28% increase in Western European regional revenue for Q3 as Central and Eastern Europe also enjoyed a 27% rise. The Nordics, however, declined by 1%.
“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% for the quarter,” said Kindred.
“It is also promising that the strong activity levels for other products have sustained.”
These other products represent the Stockholm-listed operator’s online casino, gaming, poker and bingo offering, where Q3 revenue rose by 27% to £159.8m, accounting for 52% of total.
Kindred Group’s strict cost controls were also a key driver of revenue growth for Q3.
As a percentage of gross winnings revenue, employee costs dropped to 9.4% from 10.8% quarter-on-quarter as marketing costs fell from 23.6% to 21% for the same period.
Significant events during Q3 saw Kindred Group launch pay and play brand Otto Casino in Finland and continue its US expansion having entered Indiana.
Kindred Group CEO Henrik Tjärnström
Kindred Group CEO Henrik Tjärnström said: “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,” he added.
After the reporting period, Kindred Group said average gross winnings revenue was up 42% year-on-year between 1 October and 3 November.