Kindred Hits a Historical High
The old adage of “when the going gets tough, the tough get going” certainly applies to leading European online gambling operator Kindred Group, who are poised to post an all-time high of around £365m (US$497.3m/€408.7m) in quarterly revenues.
Defying the devastating economic impact of Covid-19 on 2020, Kindred–owner of Unibet and 32Red, among other verticals–has just published a trading update that claims an impressive 55 per cent, year-on-year, jump in Q4 revenue.
Following their “strongest quarter ever”, the group is now set to publish its full-year results on February 10.
Kindred is anticipating fourth-quarter EBITA in the region of £115m (US$156.7m/€128.8m), a massive 360 per cent increase over 2019 Q4 EBITA.
The company also recorded a strong 10 per cent sports betting margin in Q4 (compared to its average of 8.5 per cent), with 1.78 million active players registered across its gaming portfolio.
Simultaneously, investment in marketing for Q4 was upped by 13 per cent, compared to the same quarter in 2019, much to counter the potential negative impact of Covid-19 and downward revenue effects of a reduced sports schedule.
Despite this, marketing spend in the fourth-quarter, as a fraction of revenue, fell from 23 to 21 per cent thanks to the company’s strong financial growth.
Following Kindred’s 24.2 per cent rise in revenue for Q3, which measured £280.7m (US$382.43m/€314.3m), the company is undoubtedly on a historic high.
It’s a summit that Chief Executive Henrik Tjärnström credits to shaping a diversified business model allied to a super focus on time-and-motion efficiency.