BUSINESS

Kindred Group record revenue following 32Red acquisition

TAGs: 32Red, kindred group

kindred-group-record-revenueStockholm-based online gambling operator Kindred Group reported record revenue in the second quarter thanks to contributions from new acquisition 32Red.

Figures released Wednesday show Kindred’s revenue hitting £166.6m in the three months ending June 30, a 32% rise over the same period last year (22% in constant currency terms). Earnings rose 52% to £33.4m while after-tax profits were up by a similar margin to £20.4m.

On June 6, Kindred completed its acquisition of online casino operator 32Red, which contributed revenue of £4.7m and earnings of £1.2m to Kindred’s Q2 results. Kindred is now focused on integrating 32Red’s operations into its own and expects to migrate 32Red onto the Kindred platform by Q2 2018.

Sports betting turnover shot up nearly 28% to £1.15b in Q2, while sports revenue improved 30% to £73.2m. Live betting accounted for 61.6% of turnover and 52.3% of betting revenue.

Casino & Games revenue was up 30% to £84.3m, while Other products improved 68% to £5.2m and even the much-maligned poker vertical got into the act, rising 50% to £3.9m, allowing Kindred to claim “the fastest growing licensed poker network in the industry.”

Kindred’s operating costs were also up significantly, rising 24% to £73.7, of which £34.8m was spent on marketing (up from £30.4m in Q2 2016). Kindred’s salary costs rose £2.6m to £17.5m as total staff count rose by more than 200 bodies year-on-year, including 32Red’s 124-strong staff.

Kindred’s traditional reliance on Nordic markets continues to decline, despite Nordic market revenue rising 26% year-on-year to £67.8m. Western Europe market revenue gained 41% to £83.8m, claiming 50% of Kindred’s overall revenue pie. Central, Eastern and Southern European markets saw revenue rise 6% to £11.5m.

Active customer ranks improved by 3% to 1.17m, of which roughly 39k came via 32Red, although active customers experienced a slight decline from Q1 2017. Customers are making more wagers on the go, as mobile revenue was up 52% year-on-year and accounted for 73% of overall revenue.

Kindred CEO Henrik Tjärnström said Q3 has started off on a tear, with average daily revenue through July 23 up 20% over than the same period last year, although this gain shrinks to 15% once you factor out exchange rate changes, and shrinks further to 4% if you exclude contributions from 32Red.

In addition to 32Red, Kindred’s brands include its flagship Unibet operation, as well as Roxy Palace, StanJames.com, iGame, the female-focused Maria Casino and half a dozen others.

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