Kindred CEO: US soon to be one of our largest markets
Operator records US 2020 revenue of $32.7m as it plots imminent launches in Iowa and Illinois
Kindred Group CEO Henrik Tjärnström expects the US to soon become one of the operator’s largest markets after it reported full-year 2020 revenue of £23.8m ($32.7m).
Q4 saw US revenue increase 12% on the previous quarter to £7.9m ($10.9m), although this growth was reduced by a low sportsbook margin of 4% due to higher betting promotion uptake.
During Q4, active customers increased by 16% across New Jersey, Pennsylvania, and Indiana where the operator is live.
However, the business reported £5.7m ($7.8m) in EBITDA losses for Q4 2020 on cost of sale expenses and marketing spend of £5.2m ($7.2m).
“We carried those investments from the US and still delivered an all-time high in EBITDA contributions [overall],” Tjärnström said.
“Across all the states we’re in, we’re still in that investment phase so logically the investment contribution will increase,” he added.
Stockholm-listed Kindred has market access in up to 12 states and plans to be live in as many as six by the end of 2021.
The CEO expects Kindred to launch in Iowa and Illinois in the coming quarters, while it is still awaiting the outcome of its license application in Virginia.
“We are almost ready in Illinois and in discussion with the regulator about when to go live,” the Swede said.
“It’s encouraging to see that igaming regulations are speeding up in the US with Indiana potentially opening up before the end of the year.
“It’s pleasing to see the hard work the team is doing on the ground is paying off,” he added.
The operator also announced additional market-access deals in Arizona and California via a partnership with the Quechan Tribe of the Fort Yuma Indian Reservation.
The agreement spans 10 years with the option to extend the contract, which includes retail and online betting and igaming.
Kindred Group US SVP Manuel Stan said: “California is likely to become one of the largest markets in the world, with yearly revenues expected to pass $2bn, while Arizona is expected to reach $200m yearly sports betting revenues at maturity.
“Securing early access to these two key states puts us in a great position to prepare a successful launch together with a great partner with a strong local presence,” Stan added.