Record quarter for Kindred Group driven by Euro 2024

Lea Hogg July 25, 2024

Share it :

Record quarter for Kindred Group driven by Euro 2024

Kindred Group has reported a successful Q2 2024, with total revenue reaching ￡327.6 million, a 7 percent increase year-on-year. Excluding the US operations, which are being discontinued, the total revenue saw a 9 percent rise. The B2C gross winnings revenue (GWR), which forms the majority of the total, rose by 6 percent year-on-year to ￡317.2 million.

The Euro 2024 significantly contributed to the overall GWR, driving “very strong” revenue. Meanwhile, Relax Gaming’s B2B business added ￡10.4m to Kindred’s total revenue, marking a 16 percent year-on-year increase. The strategic execution focus of the operator is yielding results, with underlying EBITDA rising by 32 percent to ￡73.6 million for the quarter. This growth was fuelled by a 12 percent increase in active customers, reaching 1.75 million.

The company declared a profit after tax of ￡44.5 million, a significant increase from ￡27.7 million in Q3 2022. This profit includes a loss from discontinued operations of ￡1.7m and a profit from continuing operations of ￡46.2 million. For H1 2024, Kindred posted a total revenue of ￡635.3 million, a 4 percent increase compared to H1 2023, with underlying EBITDA rising by 26 percent to ￡132.9 million.

Regional performance and CEO commentary

In terms of regional GWR, Western Europe saw a 16 million increase, reaching ￡208.4 million. The Nordic region’s GWR remained flat at ￡71.6 million due to weaker casino performance offsetting an increase in sports betting GWR. Central, Eastern, and Southern Europe saw a 9 percent year-on-year decline in GWR to ￡30.2 million, primarily due to a faster decrease in sports betting GWR than casino GWR. Other regions saw a 49 percent decline in GWR to ￡7 million, with North American market revenue dropping 73 percent to ￡2.2 million, in line with expectations due to the closure of operations.

CEO Nils Andén highlighted the company’s resilience and strategic execution, which is reflected in the strong performance across the market portfolio. He noted the particularly strong development in locally regulated markets, with year-on-year gross winnings revenue growing 10 percent (12 percent excluding North America). The second quarter saw strong sportsbook activity, boosted by Euro 2024, leading to a historic high sportsbook margin of 12.1 percent.

Looking beyond Q2, the average daily gross winnings revenue for the group was ￡3.28 million up to 21 July, 10 percent ahead of the daily average in Q3 2023. However, the closure of North American operations distorts the comparatives, and growth in group GWR excluding North America was 12 percent for the same period. The sports betting margin after free bets for the period was 10.6 percent, ahead of the company’s long-term average of 9.9 percent, and the 9.4 percent recorded in Q3 2023.

As of today, Kindred Group PLC, listed on the Stockholm Stock Exchange under the ticker symbol KIND-SDB, is trading at a price of 125.90 Swedish Krona (SEK). There has been no change in the stock price from the previous trading session, indicating a stable market condition for Kindred Group PLC.