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Malta – Kindred CEO commends ‘sustained momentum’ despite Covid-19 disruption

By - 6 November 2020

Kindred Group’s CEO praised the company’s ‘sustained momentum’ despite the disruption caused by Covid-19.

In its latest quarterly report, Q3 2020 gross winnings revenue amounted to £280.7m, an increase of 24 per cent on Q3 2019. Underlying EBITDA was £74.6m, profit before tax £60.7m and after tax £52.5m.

Earnings per share were £0.231, free cash flow £59.7m and a net debt position of £2.2m, an improvement from £61m at the end of the second quarter.

The latest figures posts gross winnings revenue between January and September at £765.5m (up 13 per cent on the preceding year), underlying EBITDA £168.8m and profit after tax £80.3m.

“Reflecting on the past six months, it is evident that societies across the world continue to struggle as a result of the COVID-19 pandemic. Despite these challenges, and thanks to our diverse business model, I am pleased that we can report sustained momentum across our markets with Gross winnings revenue of £280.7m, a 24 per cent increase compared to the same period last year, and an all-time high in active customers.

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 eight 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 contributing factors are the great efforts made to enhance customer experience and high customer satisfaction scores, both important as we expand our locally regulated footprint,” commented Henrik Tjärnström, Kindred Group CEO.

Henrik also praised encouraging developments in the US: “The US is a key investment market where our team have been working hard to go live in our third state, Indiana, during the quarter. We are now pushing forward to launch in Illinois and Iowa in 2021, along with more states in the pipeline.

“It is encouraging to see the continued strong growth in the US, with the market share in Pennsylvania reaching above 5 per cent during the third quarter. With New Jersey and Indiana also growing steadily, I expect the US to become one of Kindred’s largest markets during the next couple of years.

“As with all market entries, the initial investment phase is focused on building our customer base and, as a result, the US market has seen revenue negatively impacted by big bonus campaigns during the second half of the quarter, but still grew 22 per cent sequentially.”

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