Strong Performance and Strategic Cost Controls Fuel Growth
Kindred Group, in its latest financial statement, reported a substantial revenue increase of 29% year-on-year, totalling £307.3m for Q2. This growth has been attributed to strategic cost controls and notably strong performance in the Netherlands. The country alone generated a significant £63.6m in sales, making a prominent contribution to the overall increase.
The company’s success has also been boosted by a surge in sports betting and a reduction in casino bonus costs. These favourable conditions have helped balance the challenges faced in markets like Belgium and Norway, ensuring a steady growth trajectory.
Despite encountering these obstacles, Interim CEO Nils Andén remains confident about achieving their target underlying earnings before interest, tax, and amortisation (EBITDA) of £200m for 2023. In Q2 alone, the underlying EBITDA reached an impressive £55.7m, marking a remarkable 111% year-on-year increase.
Review and Scalability Securing Future Success
Andén highlighted the importance of Kindred’s “scalability,” with a significant 82% of gross winnings revenue now sourced from locally regulated markets. This strategy demonstrates the company’s adaptability and resilience in navigating regulatory landscapes across various regions.
Addressing concerns regarding the company’s ongoing strategic review initiated in April, Andén assured stakeholders that the process is progressing as planned. The review, which could potentially lead to a merger, sale, or partial sale of the business, is seen as a critical step towards future-proofing the company.
In terms of cost management, Andén made it clear that they are leaving no stone unturned. The company decreased its marketing costs to £52.6m in Q2, down from £54.8m in Q1. Newly appointed CFO Patrick Kortman emphasized the company’s drive for efficiencies across all areas of operation.
Milestone Achievement: Proprietary Tech Platform Launch
Earlier this month, Kindred Group launched its proprietary technology platform in Pennsylvania. This strategic move not only highlights the company’s commitment to growth and innovation but also marks a significant milestone in expanding its footprint in North America. With this launch, Kindred is poised to tap into the burgeoning US gaming market, further securing its position as a global leader in the industry.