Kindred Group Plc maintains growth across all metrics, despite its sportsbook unit trading against post-EURO and COVID-19 ‘normalisation effects’. 

Publishing its Q3 trading statement (period ending 30 September), Kindred registered group revenues of £298 million up 6% on corresponding 2020 results of £281 million.

Revenue growth was attributed to the continued expansion of Kindred’s casino portfolio, which generated period gross winnings of £168 million up 16% on corresponding 2020 results.

Casino growth helped Kindred offset a dip in sportsbook activity due to COVID-19 restrictions being lifted across Europe and a ‘seasonal drop’ in sports fixtures, following a period of ‘intense activity’.

Helping to mitigate seasonal effects, Kindred registered a 5% increase in active customers to 1.74 million (2020: 1.65m) as the group underlined the ‘proven scalability’ of its multi-product strategy helping secure a +13% increase in underlying EBITDA to £84 million (Q3 2020: £75m).

Period gross profits were registered at £185 million – up 13% on Q3 2020 results of £163 million – as Kindred lowered its overall period costs of sales expenses to £113 million (Q3 2020: £117m).

“The conclusion of Euro 2020 coincided with the lifting of COVID-19 restrictions across much of Europe. After a relentless sporting calendar and subsequent low sports seasonality, sportsbook activity slowed as options for other sources of entertainment improved.” – stated Kindred Group CEO Henrik Tjärnström.

“However, it was pleasing to see continued strong casino activity generating an increase in casino Gross winnings revenue of 16 per cent to GBP 168.3 million versus the same period last year, which is testament to our strong multi-product offering.”

Providing a year-to-date outlook, Kindred tracks an EBITDA of £296 million (+76%), generated from group YTD gross winnings of £1.05 billion (YTD2020: £766m).

Irrespective of seasonal lags, Kindred maintains confidence in its sportsbook unit rebounding across regulated European markets in which the company continues to register growth in the markets of the UK, Denmark and Belgium.

Of note, Kindred aims to recover its momentum in France, where the sportsbook only market dragged following consecutive months of outperformance.  

Further Q4 developments saw Kindred cease its Dutch market services, as the company awaits its KOA Regime licence approval – anticipated to be secured by Q2 2022.

The Dutch closure has readjusted the firm’s Q4 gross win revenue guidance in light of a decrease in active player numbers and a weaker sports betting margin. 

Providing an ‘indicative Q4 guidance’ depending on activity levels and the sports betting margin for the remainder of the quarter, Kindred estimates Gross winnings revenue for the fourth quarter trading to be in the range of  £220 to 260 million.