Kindred Group posts record growth for H1 2018
Kindred Group Plc, the Stockholm-listed online gambling company, has posted its interim H1 2018 trading update, with the group continuing to smash previous growth records.
Revealing its second quarter (Q2) and H1 2018 performance, Kindred continues to see significant online organic growth.
Gross winnings revenues were up 31% for Q2 to £219mm and £426m for H1.
The underlying expected earnings before interest, taxes, depreciation and amortization (EBITDA) was £41.7m for the quarter and £89.2m for the first half of the year. Profit after tax rose to £25.5m for Q2 and £55.4m for H1 2018.
The group’s sports betting brand, 32Red, also performed well, with gross winnings revenue at £16.9m for the quarter.
However, growth at 32Red has been impacted by the £2m fine it received for social responsibility failings from the UK Gambling Commission. While growth has been slowed, the group have implemented a number of sustainability measures.
Such significant growth means that Kindred continue to break their record financial performance of the past and the group have two factors to thank for the strong first half of the year.
Firstly, an all-time high in active customers of 1.5m ensured that organic growth remained strong. That number is an increase from 1.1m in Q2 in the previous year and from the 1.3m active customers in Q1 of 2018.
Secondly, the 2018 FIFA World Cup that ran throughout June and July not only led to higher active users, but also more bets being placed. Together with some surprise results during that competition, Kindred saw revenues and profits soar, as group CEO, Henrik Tjärnström, explains:
The World Cup provided a significant all-time high in customer activity and continued strong organic growth, and unexpected results led to a sportsbook margin of 8.2% after free bets. Gross winnings revenue from mobile grew by 29% compared to the second quarter last year and amounted to 72% of our total Gross winnings revenue. Of the Group’s Gross winnings revenue 43% came from locally regulated markets. In the period up to 22 July 2018, average daily Gross winnings revenue in GBP was 29% higher compared to the same period in 2017. Adjusting for the impact of exchange rate changes, the growth was 30%.– Henrik Tjärnström, CEO Kindred Group Plc