Kindred, a major player in the Swedish online gambling industry, has released its remarkable Q2 2024 statistics, which show strong development in its main regions and the favorable effects of the Euro 2024 competition. The key to this achievement was the company’s strategic focus on Western Europe.
Kindred announced that its group revenue had increased by 7% year over year to GBP 327.6 million ($423.3 million). Revenue increased by 8% when North American operations were taken out of the picture due to closures. Profit before tax increased by 68% to GBP 55.6 million ($71.9 million), while underlying EBITDA increased by 32% to GBP 73.6 million ($95 million). The B2C operations saw a 6% increase in gross wins income, amounting to GBP 317.2 million ($410 million).
Kindred attributed these positive results to “exceptional growth in locally regulated markets.” The company’s performance in Western Europe was particularly strong, with notable gains in the Netherlands (up 17%), Belgium (up 12%), and France (up 41%).
Market Dynamics and Customer Engagement
CEO Nils Anden highlighted the increase in active customers in France by 26%, driven by the launch of an updated Unibet app and an enhanced 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 stated.
The Euro 2024 tournament significantly boosted customer engagement and sportsbook activity towards the end of the quarter. Favorable outcomes, coupled with a record share of Bet Builder activity, resulted in a historic high sportsbook margin of 12.1 percent.
Despite overall positive trends, Kindred faced slowed growth in the UK, with revenue declining by 4% due to new regulatory measures. The company expects this trend to persist but notes it has performed “in line with the market.” Similarly, in Sweden, gross winning revenue fell by 3%, impacted by increased affordability checks introduced last year. However, Kindred is starting to see “signs of improvement” and is actively exploring strategies to regain market share in Sweden.
Kindred’s quarterly performance also benefited from lower marketing costs and improved return on investment. Marketing expenses as a share of revenue decreased from 9.9% in Q2 2023 to 8.4% this year, partly due to the company’s exit from the North American market.
For the first half of 2024, Kindred’s 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).
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