Kindred US records $7.8m loss in Q4 on marketing and operations costs
CEO Henrik Tjärnström expects Q419 losses to double in 2020 as operator invests in Indiana and Iowa expansion
Kindred Group reported EBITDA losses of $7.8m across its US business in Q4 2019 on high marketing and operational costs.
In the Stockholm-listed operator’s first publicly reported quarter for US performance, the cost of services, marketing and admin expenses totalled $10m, while revenues reached $2.2m.
However, Group CEO Henrik Tjärnström said overall US revenues had grown 90% month-on-month from December and January.
He also said the firm was expecting to double its Q4 losses in 2020 as it launches online betting and casino apps in Indiana.
“[Q1 2020] is perfectly in line with our expected trend to grow very fast in the beginning and then gradually as we get more scale on the investments we’re making, we expect to see an improved contribution to come,” Tjärnström told investors.
He said the operator was aiming for “high single-digit market share at year five.”
“We have strong ambitions and we are trending positively especially in a market like Pennsylvania where we are coming close to the front runners in the market,” he said.
In 2019 Kindred’s betting revenues in Pennsylvania reached $733,356, according to figures from the Pennsylvania Gaming Control Board, while its online casino revenues came in at $1.1m.
Kindred’s Unibet brand expects to be operational in Indiana in Q3 2020 via its partnership with Caesars.
An online launch in Iowa will follow in January 2021.