Kindred Reports Strong Q2 Results with 7% Revenue Increase

Financial Highlights

This growth was largely driven by strong performance in Western Europe and the commencement of the Euro 2024 tournament towards the end of the period. Excluding the North American business, which finalized its closure during the quarter, group revenue increased by 8%.

The company’s underlying EBITDA for Q2 saw a significant rise of 32%, reaching GBP 73.6 million ($95 million). Profit before tax surged by 68% to GBP 55.6 million ($71.9 million).

Gross winnings revenue from B2C operations increased by 6%, totaling GBP 317.2 million ($410 million).

Key Markets and Customer Growth

Kindred attributed its positive results to “exceptional growth in locally regulated markets.” Western Europe, in particular, showed notable improvements, with revenue increases in the Netherlands (17%), Belgium (12%), and France (41%).

The company’s CEO, Nils Anden, highlighted a 26% increase in active customers in France, credited to the launch of an updated Unibet app and enhanced user experience.

Anden noted, “Our development in locally regulated markets has been particularly strong, with year-on-year gross winnings revenue from locally regulated markets growing 10 percent (12 percent excluding North America).”

Sportsbook Activity and Bet Builder Success

The second quarter featured robust sportsbook activity, bolstered by the Euro 2024 tournament, which enhanced customer engagement.

The period also saw a record share of Bet Builder activity, contributing to a historic high sportsbook margin of 12.1%.

Challenges and Regulatory Impact

Despite the overall positive performance, Kindred faced challenges in the UK market, where growth slowed by 4% due to new regulatory measures.

The company anticipates this trend will continue, although it has performed “in line with the market.”

In Sweden, new regulatory measures, including increased affordability checks, led to a 3% drop in gross winning revenue.

However, Kindred is observing “signs of improvement” and is actively seeking ways to regain market share.

Cost Management and Marketing Efficiency

Kindred reported lower marketing costs and improved return on investment (ROI) as key factors in its improved quarterly performance.

Marketing expenses as a share of revenue decreased from 9.9% in Q2 2023 to 8.4% this year, partly due to the company’s exit from the North American market.

First Half of 2024 Performance

For the first half of 2024, Kindred’s total revenue rose by 4% to GBP 635.3 million ($821.3 million). Gross winnings revenue from B2C operations increased by 3% to GBP 614.8 million ($795 million), and underlying EBITDA grew by 26% to GBP 132.9 million ($172 million).