Swedish online gambling heavyweight Kindred has reported solid Q2 results, with group revenue increasing 7% year-on-year to GBP 327.6 million ($423.3 million) on the back of a strong Western Europe performance and the start of the Euro 2024 tournament towards the end of the period. Excluding its North American business, which finalized its closure in the period, group revenue was up by 8%.
Underlying EBITDA for the quarter increased by 32% to GBP 73.6 million ($95 million), while profit before tax hiked by 68% to GBP 55.6 million ($71.9 million). Gross winnings revenue from B2C operations rose by 6% to GBP 317.2 million ($410 million).
Kindred attributed the positive Q2 results to “exceptional growth in locally regulated markets,” including improved performance across Western Europe. The region helped drive the group’s overall quarterly results, especially in the Netherlands (up 17%), Belgium (up 12%) and France (up 41%).
Kindred CEO Nils Anden also highlighted that active customers increased by 26% in France, with the firm seizing a larger market share thanks to an updated Unibet app launch and improved user experience.
“Our development in locally regulated markets has been particularly strong, with year-on-year gross winnings revenue from locally regulated markets growing 10 percent (12 percent excluding North America),” Andén said.
“The second quarter contained strong sportsbook activity throughout, with Euro 2024 boosting customer engagement towards the end of the period. Favorable results, in combination with a record share of Bet Builder activity, delivered a historic high sportsbook margin of 12.1 percent.”
Despite these positive developments, officials acknowledged “slowed growth” of 4% in the UK as a result of new regulatory measures. The company expects the negative trend to continue, although Kindred says it has performed “in line with the market”.
Similarly, new measures in the regulated market of Sweden saw gross winning revenue drop by 3% in the country, driven by increased affordability checks introduced last year. However, the company said it is starting to see “signs of improvement” and is actively exploring ways to regain its Swedish market share.
Elsewhere in its report, Kindred highlighted lower marketing costs and improved ROI as drivers of the improved quarterly performance, with marketing as a share of revenue decreasing from 9.9% in Q2 2023 to 8.4% this year. The company’s exit from the North American market played a key role in this drop.
For the first half of 2024, total revenue rose by 4% to GBP 635.3 million ($821.3 million), with gross winnings revenue from B2C operations up by 3% to GBP 614.8 million ($795 million). Underlying EBITDA increased by 26% to GBP 132.9 million ($172 million).
