Kindred reports strongest quarter ever in unaudited Q4 trading update

By Peter Lynch

Kindred Group has reported its strongest quarter ever, with gross winnings revenue reaching approximately £365m ($496.4m), a 55% rise from Q4 2019.

The operator achieved the growth through “continued strong activity across its markets and products,” with record active customers of 1.78 million, an 11% year-on-year increase.

Kindred added that a “slightly higher than normal sports betting margin” of 10% also played a role in revenue growth, compared to the long-term average margin of 8.5%.

Underlying EBITDA for Q4 2020 is approximately £115m, compared to £30.7m in Q4 2019, with strong revenue growth, and Kindred’s focus on operational efficiency and costs both playing a key role in the rise.

The level of marketing investment, meanwhile, increased during the second half of the year, with Q4 2020 total marketing spend 13% higher than in the fourth quarter of 2019.

Despite an increase in marketing spend between Q3 and Q4 2020, the “significant increase in revenue and improved marketing efficiencies” have resulted in marketing spend that was approximately 21% of gross winnings revenue for Q4 2020.

And despite a decline in marketing spend throughout the ongoing coronavirus pandemic, the online gambling operator’s share of voice increased throughout 2020.

Kindred added that the year-end report for 2020 will be published on 10 February 2021, with the results available through webcast.

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