Kindred Group sees massive growth in 2020
Kindred Group Plc has been actively seeing an “all-time high” quarter performance, and the group has applauded its expansive business model and operating discipline. After it published its 2020 results, the Stockholm-listed online gambling group attained a record performance in customer activity. It even broke the 1.75 million active player mark all across its brand portfolio. The huge customer activity provided the company will an all-time high in the fourth quarter’s gross winnings, which amounted to about £365 million, a whopping 54% increase to its 2019 counterpart of £236 million.
The operator’s trading momentum was pushed by a busy sports calendar in the end of the year, since its sportsbook units witnessed record gross winnings of almost £177 million, a colossal increase on the £110 million that was recorded in the last quarter of 2019.
Kindred delivers double-digit growth across its main Nordic, Western Europe, CIS and Australia markets. It also tripled its period underlying EBITDA to £118 million, which is a massive increase from the £30 million that was recorded in Q4 2019.
Regardless of its increasingly high customer activity, Kindred kept operating on a ‘strict cost control basis’, which resulted in the company obtaining Q4 profit (after tax) of £99 million, a huge improvement from its 2019 results of £13 million.
Group CEO Henrik Tjärnström stated:
I am pleased that we can finally put 2020, a difficult year for most people, businesses and countries, behind us. It has certainly been a year we will all remember. At Kindred, we have successfully managed to navigate these uncertain times and have continued to attract customers who enjoy a safe and entertaining gambling experience, resulting in several new all-time highs this quarter including active customers and Gross winnings revenue, which increased 54 per cent from the fourth quarter of 2019 to GBP 364.7 million. With a scalable business model and our house in order we are ready for what lies ahead. The year has started well, with the average daily Gross winnings revenue for the first 38 days of 2021 being 41 per cent higher (36 per cent higher in constant currency) than the same period last year. Finally, I would like to thank the Kindred team for their outstanding work during a very difficult year and I know that all of us look forward to giving our customers a safe and exciting experience during 2021, building up to the Euros and the Olympics in Tokyo.
In a report on its 2020 activities, Kindred stated that its powerful fourth quarter closing was a big help to it achieving gross win revenue of over £1 billion, the first time ever doing so in its whole history.
In the meantime, the company highlighted its ‘operating discipline’ that aided them to deal with the difficult conditions brought along by the COVID-19 pandemic. Kindred kept full-year operating costs as £427 million, which aligned with the 2019 results.
Carrying out group-wide cost controls, Kindred announced full-year marketing costs of £203 million and operating expenses of £64 million less than its 2019 performance. Closing its 2020 accounts, Kindred recorded a group underlying EBITDA of £286 million, up from £130 million in 2019, all while also tripling its corporate profits after tax to about £165 million (FY2019 £57m).
The 2020 Kindred results also incorporated a full overview of the company’s ‘sustainability metrics’ trailing performance of the firm’s ‘safer gambling programme’. The firm is now claiming that it will be reported as corporate duty.
Kindred gave an overview of what 2021 holds for the company, and pressed on being careful with headwinds caused by the COVID-19 pandemic during this year all across its global markets, while also mentioning the company’s strategy and passion towards achieving its goals.