SBC News Voice of the Sports Betting Industry
Presenting its Q3 trading update (period ending 30 September), an enlarged Kindred Group Plc continues to deliver for its investors, declaring an ‘all-time high’ quarter for revenue and profits.
Trading against a tough Q3 2106 comparative period (featuring Euro 2016), Stockholm-listed Kindred Group would generate group revenues of £194 million up 36% on Q3 2016’s £142 million. Year-to-date Kindred has surpassed the £500 million mark in group revenues.
“I am delighted to report record revenues and profitability for Kindred Group in the third quarter of 2017 driven by strong growth across our major markets and solid cost control.” detailed Henrik Tjärnström, CEO of Kindred Group.
Kindred’s strong revenue momentum would see the operator declare a period underlying group EBITDA of £46 million (Q3 2016: £33 million), of which £3.7 million was generated by newly acquired asset 32Red.
“Despite the absence of a major football events this quarter, the organic Gross winnings revenue growth in constant currency was 17 % compared to the same period last year, which demonstrates that we continue to gain market share. 32Red contributed GBP 18.6 million of Gross winnings revenue and GBP 3.7 million of underlying EBITDA. This acquisition also brings new expertise to our teams and additional locally regulated revenue and opportunities for future revenue and cost synergies. In the third quarter of 2017, 41% of the Group’s Gross winnings revenue came from locally regulated markets.” Tjärnström added
Reporting its strongest trading period, Kindred would detail that it had recorded +1.2 million active customers across its group brands, of which +120,000 had been delivered by 32 Red.
“Our focus on mobile strategy has enabled us to remain at the forefront of industry developments. In the third quarter, Gross winnings revenue from mobile grew by 51 percent compared to the third quarter last year and amounted to 71% of our total Gross winnings revenue.” Tjärnström commented on KPI gains
Closing its Q3 trading period, Kindred governance would declare a period operating profits of £29.9 million (Q3 2016: £21 million), with the operator generating £66.6 million in group profits for its year-to-date performance.
Looking forward, Kindred governance enters a Q4 2016 period confident of hitting all corporate expectations. The company has increased its marketing coverage with the start of a new European football season, launching new cross-market sportsbook campaigns and securing new football partnerships (Unibet – Aston Villa FC).
“In the period up to 22 October 2017, with approximately 50% higher than normal sportsbook margins, average daily Gross winnings revenue in GBP was 68% higher compared to the same period in 2016. Adjusting for the acquisition of 32Red and the impact of exchange rate changes, the growth was 57%,”
Kindred Q3 2017 Performance Overview
