Kindred reports record Q2 driven by 153% rise in sports betting revenue

Kindred Group has reported Q2 2021 revenue of £363.7m following an annual rise of 55% driven by record sports betting activity.

Underlying EBITDA more than doubled year-on-year to reach £114.3m on an EBITDA margin of 31%, while profit after tax more than tripled to £87.1m.

The Stockholm-listed operator reported an all-time quarterly high in active customers at 1.9 million over a Q2 period dominated by Euro 2020.

Sports betting was the standout vertical during an unusual comparative period following the dearth of sports events in Q2 2020 due to the Covid-19 pandemic.

Kindred’s Q2 2021 sports betting revenue skyrocketed by 153% year-on-year as a result, boosted by a sports betting margin of 10.7%, rising to 13.8% for Euro 2020 betting alone.

“In line with previous quarters, football was the top sport for sports betting turnover and activity was high as the national and international football leagues concluded,” said the operator.

“Furthermore, the long-awaited Euro 2020 tournament commenced in June contributing 12% to total sports betting turnover in the second quarter of 2021.”

Several matches in the early stages of the competition achieved record activity, according to Kindred.

Indeed, Switzerland eliminating France on penalties at the Round of 16 stage became the operator’s fourth highest turnover event of all time.

France is a key operational market for Kindred and was a major contributor of Western European revenue as the market rose by 162% year-on-year after being particularly affected by the 2020 lockdown and sporting blackout.

Kindred’s Western European revenue increased by 74% annually to £245m, accounting for 67% of total revenue by region. The Nordics came in second at 21% of total, achieving revenue of £75.4m in Q2 amid a 26% uptick.

Central, Eastern and Southern Europe, where Kindred is live with Unibet and Vlad Casino, jumped by 33% to £28.3m for the period as so-called other regions, including the US, climbed 14% to £15m.

Kindred’s casino segment also performed well during the quarter and still accounts for the bulk of overall revenue (49%) following a year-on-year upturn of 18%.

Other verticals have faltered since customers flocked to their offerings during the height of the pandemic last year, however. This includes poker, where revenue fell by 23% annually.

Marketing costs amounted to £61.6m for Q2 amid a rise of 21%. This increase was more significant during a sports-heavy second quarter after Kindred reduced spend in 2020 in response to Covid-19 and its impact on sporting events.

Notable events post-reporting period saw Kindred acquire multi-product provider Relax Gaming for €295m, while average daily revenue for the first 18 days of July 2021 came in at 20% higher on a constant currency basis when compared with Q3 2020.

Despite the strong financial results, Kindred Group’s share price fell by more than 6% in early trading on Nasdaq Stockholm.