Kindred’s Spirited Fight Back
Facing unprecedented Coronavirus Covid-19 challenges, Kindred Group Plc. has changed it up and emerged stronger by boxing clever.
The group, remarkably, has posted revenues of £235m (US$304.80m) in Q2 — a four per cent rise over the corresponding financial quarter last year.
Year-to-date (YTD) earnings are £484m (US$627.75m), up £34m (US$44.10m) over YTD 2019.
And Q2 profits after tax were reported to be £27m (US$35m).
“We have delivered growth across all core metrics during tough times,” asserted a buoyant Henrik Tjärnström, Kindred Group CEO. “We have shown ourselves to be a resilient and adaptable business.”
In early March, as the full impact of the pandemic hit home, the company took decisive action to focus on cutting costs and streamlining budgets.
Thanks to this; EBITDA increased by 70 per cent during Q2, said Tjärnström.
“Our main savings were achieved in marketing, which is logical as most marketing is linked to sports events,” he explained.
“Over the coming quarters, we plan to increase our marketing towards normal levels in line with our long-term strategy, but we will manage this process in a cautious way.”
Q2 trading saw Kindred undertake a series of adjustments to its sportsbook operations, navigating a period of reduced market activity, which resulted in division revenues declining to £67m (US$86.90m), compared to £108m (US$140m) in Q2 2019.
Kindred reduced its customer free bet and bonus incentives and, adroitly, opted to focus on Covid-19 unaffected eSoccer, Darts and Table Tennis markets.
Although daily sportsbook action fell below £6m (US$7.78m) in value, operating margins were boosted by lower betting duties; particularly in the French market.
Meantime, Kindred’s online casino division saw a massive 40 per cent increase in Q2 revenues–to £150m (US$194.56) from £106m (US$137.49) in Q2 2019.
And throughout, emphasised Tjärnström. Kindred has adhered to its principles of safer gambling, customer care and sustainability.
“Our teams around the world have worked incredibly well in the new environment, both in dealing with the challenges from the pandemic and in driving efficiency as our cost reduction programme continues.
“Kindred remains conscious of the risk of further disruption both to sports and the wider economy, so we will continue to manage the overall cost base carefully,” Tjärnström added.
A more detailed look at interim expenses saw operating costs amount to £212m (US$275m) in H1, only £1m (US$1.3m) up on H1 2019.
Marketing costs in the financial half were £97m (US$125.81), down from £107m (US$138.77m) in H1 last year. Workforce salaries were maintained at £56m (US$72.63m). There was a small drop in the number of employees.
Kindred Group has achieved revenue growth for the second quarter in a row, despite the impact of Covid-19.
The return of major sports now promises the gaming outfit even bigger revenues.
When the going gets tough it would seem that those of a Kindred Spirit get going.