Strong Performance by Kindred Group Fueled by Euro 2024, Showcasing Impressive Revenue Growth
Kindred Group Roars Q2 2024
The tech-driven gambling powerhouse, Kindred Group, has smashed quarterly records with a whopping £327.6 million in total revenue—annotating a 7% surge year-on-year. Eliminating the US operations under the chopping block, the remaining business experienced an impressive 9% jump.
The main contributing factor to this enormous Gross Winnings Revenue (GWR), amounting to £317.2 million, was the steamy Euro 2024 tournament. Climbing up the ladder, Relax Gaming's B2B segment added £10.4m to Kindred's cache, representing a 16% year-on-year increase.
The company's strategic execution strategy has been a game-changer, resulting in an underlying EBITDA skyrocketing by 32% to £73.6 million for the quarter. This growth engine was fueled by a 12% increase in active customers, touching down at a vibrant 1.75 million.
Dive into the financial details. Kindred announced a profitable After Tax of £44.5 million, representing a substantial hike from £27.7 million in Q3 2022. This profit accounts for a loss from discontinued operations of £1.7m and a profit from continuing operations of £46.2 million. For H1 2024, the company showed a total revenue of £635.3 million, a tame 4% uptick compared to H1 2023, with underlying EBITDA climbing by 26% to £132.9 million.
Regional Tidbits
Displaying regional GWR, Western Europe experienced a significant increase of £16 million, soaring to £208.4 million. The Nordic region kept a steady GWR stance at £71.6 million, although the casino performance showed signs of weakness, counterbalanced by growth in sports betting GWR. Central, Eastern, and Southern Europe conceded a 9% year-on-year decline in GWR to £30.2 million, primarily due to a steeper slope in sports betting GWR than casino GWR. Other regions saw a sharp 49% slump in GWR to £7 million, with the North American market revenue plummeting 73% to £2.2 million, reflecting expectations due to the shutdown of operations.
CEO Nils Andéen applauded the company's resilience and clever maneuvers, as gleamingly mirrored in the striking performance within various market sectors. He pointed out particularly impressive developments in locally regulated markets, with year-on-year GWR expanding 10% (12% excluding North America). During Q2, robust sportsbook activity painted a picture of a historic high sportsbook margin of 12.1%.
Ahead in the game, the average daily GWR for the group was £3.28 million up to July 21, exhibiting a 10% increase compared to Q3 2023. However, comparing apples to oranges, North American operations' closure skews these numbers, with group GWR excluding North America hopping 12% during the same period. The sports betting margin after bonuses for the period stayed at 10.6%, outperforming the company's staple 9.9% and the 9.4% clocked in Q3 2023.
As of now, Kindred Group PLC, ticketing its shares on the Stockholm Stock Exchange under KIND-SDB, hovers at 125.90 Swedish Krona (SEK). Unchanged from the previous trading session, the company maintains a steady ground in the market.
Mark your calendars! The SiGMA East Europe Summit powered by Soft2Bet will unfurl in Budapest from 2-4 September 2024.
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Kindred Group's phenomenal Q2 2024 revenue surge, totaling £327.6 million, was partially attributed to the excitement generated by the Euro 2024 tournament. The sports betting segment, boosted by Relax Gaming's B2B partnership, added £10.4 million to Kindred's revenue, marking a 16% year-on-year increase.
