Kindred Group reports encouraging quarter
Last Updated on by James King
Online gambling mammoth, Kindred Group has posted yet another great financial quarter across each of its sports and casino brands and collectively the organisation has witnessed an all-time high in terms of customers who are active on their sites.
As per the latest fiscal reports, the group saw revenue increase 55 percent to £363.7 million (2020: 235.1 million), while profit after tax came in at £87.1 million (2020: £51.6 million). The number of active customers that Kindred Group can count meanwhile, stood at 1,907,276 compared to 1,313,399 in 2020.
Such improvement has been put down to a firm and consistent focus on scalability and unyielding development across each of the group’s brands’ casino and sports divisions. However, further success can be attributed to the group’s recent decision to acquire software provider Relax Gaming, in order to gain tighter control on product development and also more efficiency.
Henrik Tjärnström, Kindred CEO, was unsurprisingly thrilled with CasinoBeats quoting him as saying: “Our dedicated focus on costs and scalability, along with strong sports betting margin, have had a positive impact on underlying EBITDA, which increased by 121 percent compared to the second quarter of last year. This equals an impressive EBITDA margin of 31 per cent,”
“The acquisition of the remaining outstanding shares in Relax Gaming, a high-margin and fast-growing B2B business, is an important part of our long-term strategy and further increases our focus on product differentiation.
“I see great potential in this deal, granting us the ability to provide customers with more unique content, increasing our flexibility, and improving our end-to-end customer experience.
“All product segments continue to show solid momentum, with the sports segment benefiting from a strong sports betting margin of 10.7 percent after free bets in the quarter.
“Meanwhile, the casino segment has delivered a record quarter with 18 percent growth compared to the same period last year, despite this being a sports-heavy quarter.
“This indicates that many of our casino customers remain loyal, even as restrictions start to ease across our markets, and is a testament to our customer experience.”
Of particular notice from the report, was that the group’s key regions that include the UK, Belgium, France, and the Netherlands had continued to perform well.
Any other contributory factors?
It could be argued on the sporting side that the initial stages of Euro 2020 – delayed a year because of the COVID-19 pandemic, could have been one reason for the increase in revenue from the year before.
With the likes of the group’s flagship brands, 32Red and Unibet all offering enticing promotions and sign-up offers throughout the tournament, this no doubt had an effect on the final figures, with these brands available in most of the key markets.
Sporting events, in general, will have undoubtedly played a part over the last quarter, especially with so many of them cancelled in the same period in 2020 – tennis events Wimbledon and the French Open (rearranged in 2020) being one example.