The accelerated shift from retail to online gambling during a year hit by the coronavirus pandemic has considerably boosted revenues at Kindred Group, which operates brands such as Unibet, 32Red, Roxy Palace and Maria Casino.
In its Q3 results announced this morning, the operator hailed a 19 per cent increase in its active customer base to 1.65m as the firm reported a 180 per cent increase in profit before tax.
CEO Henrik Tjärnström commented: “The finalisation of the previous season’s sports leagues combined with the start of the new season resulted in a strong sportsbook activity, albeit with a slightly lower sportsbook margin of just over 8 per cent for the quarter.
“It is also promising that the strong activity levels for other products have sustained. With the return of major sports leagues across the world, and the ongoing shift from offline to online, our active customer base grew by 19 per cent compared to the same period last year.”
Other highlights were:
- Gross winnings revenue amounted to £280.7m (226.0m in Q3/2019) an increase of 24 per cent.
- Underlying EBITDA was £74.6m (£37.3 in Q3/2019).
- Profit after tax amounted to £52.5m (£18.1 in Q3/2019).
- Net debt position of £2.2m (improved from £61.0m at the end of the second quarter).
Tjärnström added: “During the quarter, 61 per cent of our revenues were derived from locally regulated markets. Entering these markets often has a short-term negative impact on our business, but we know that, if managed well, this is temporary and that profitability will be restored over time.
“During the quarter, our locally regulated markets achieved annual growth in gross winnings revenue of 31 per cent, which I am extremely pleased about.”
He also told investors that he expects the US to become one of Kindred’s largest markets during the next couple of years.
He also hailed the company’s ability to adapt to the new circumstances arising from the coronavirus, and turn it into a strength. This can be seen in the fact that the first nine months of the year has seen Kindred Group almost double its profit after tax to £80.3m from £45.7m for the same period last year.