Kindred predicts record Q4 as gross winnings revenue reaches all-time high
Multi-brand operator hails continued strong activity across key markets as revenue anticipated to jump 55%
Kindred Group expects to report a 55% year-on-year upsurge in gross winnings revenue during the fourth quarter of 2020 to an all-time high of £365m.
The Stockholm-listed operator reported strong revenue growth combined with substantial operational leverage and cost efficiency measures, which should increase estimated Q4 underlying EBITDA to £115m. To put that into context, the company recorded EBITDA of £130m during the whole of 2019.
Gross winnings revenue growth was also supported by a higher than normal sports betting margin, which was approximately 10% (after free bets) during Q4, compared to Kindred’s long-term average margin of around 8.5%.
Active customer numbers also rose by record levels during the quarter, up 11% year-on-year to 1.78 million.
Kindred’s marketing spend increased gradually during H2 2020, with Q4 marketing spend up 13% from the same period in 2019, accounting for just 21% of gross winnings revenue for the quarter.
The firm said that despite a drop in marketing spend during the pandemic, its “share of voice” had increased throughout 2020.
Kindred Group’s share price rose by 5% in early trading on the Nasdaq Stockholm.