BUSINESS

Kindred Group sets 2016 revenue record, plots world domination

TAGs: kindred group, Unibet

kindred-unibet-poker-revenueThe parent company of online gambling brand Unibet set a new revenue record in the final quarter of 2016, which helped push full year revenue to its own new record high.

Figures released Tuesday by the Stockholm-listed Kindred Group show revenue hitting an all-time high of £152.8m in the three months ending December 31, 37% higher than Q4 2015 (+16% in constant currency). Earnings rose 48% to a record £38.9m and after-tax profit hit £29.4m despite betting duties rising 67% year-on-year.

For 2016 as a whole, revenue was up over 53% to £544m, while earnings gained a similar share to £123.7m and profit gained over 50% to £84m.

Kindred Group CEO Henrik Tjärnström said the results proved “the scalability of our business model and our ability to face and absorb the impact of regulatory changes.” Tjärnström said the momentum had carried forward into 2017, with average daily revenue to date up 36% from the same period last year.

Sports betting and casino remain the Kindred Group’s bread-and-butter, with sports betting revenue rising 45% to £245.5m in 2016, while casino gained 57% to £269.4m. But the poker vertical, while comparatively puny at £12.5m, was last year’s fastest grower, improving 64% from 2015’s total.

The company hailed its poker product as the industry’s “fastest growing licensed poker network,” and humble-bragged that its Relax Gaming-powered bespoke software – which debuted its version 2 during Q4 – had created “a sustainable home for poker players looking for both action and entertainment.”

Last year also saw Kindred Group lessen its reliance on its core Nordic markets. Western Europe-derived revenue was up 60% to £246.5m last year, eclipsing the Nordic market contribution of £240m (+50%). The rest of Europe added £45.7m (+59%) while other markets added £12m (+12%).

Clearly feeling his oats, Tjärnström announced that Kindred would be opening three new offices in London, Gibraltar and Malta to assist the company’s 2017 expansion plans. The company’s payroll expanded to 1,162 last year, 124 more live bodies than at the end of 2015, and the company’s current quarters are evidently straining at the seams.

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