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Yasmin Moore October 28, 2021 3 min read
Kindred Enters Choppy Seas with Challenging Q4 Results
Swedish betting operator Kindred has had a year of ups and downs. Kindred experienced gradual growth, hitting a 6% year-to-year increase in its revenues for the third quarter of 2021. However, it is currently growing through a major drop.
Kindred’s Marks a Difficult Start to Q4
The operator’s fourth-quarter saw its revenues plummet by 61% compared to the same period last year, in the first 20-or-so days of operation. There are various reasons for this, but the first and foremost was that Kindred had to stop its operations on the Dutch market. The Netherlands recently saw the opening of its own regulated online gambling market and asked unlicensed bookmakers to cease their operations in the country.
Kindred hoped to gain a quick entry but it seems like it isn’t going to be that easy and the operator will have to wait in line together with other competitors. This will cost Kindred a whopping estimate of $144 million of unrealized profits.
To put this number in context, Kindred had the highest revenue in the third quarter of the year when it raked in about $410 million. It was around this time when the operator acquired Relax Gaming for around $342 million and expanded to new markets across the United States.
Speaking about Kindred’s profits, about 64% came from Western Europe which is responsible for $261 million of the profits. Another $96 million came from the Nordic. South Europe provided a weaker income of about $35 million.
In the third quarter, the casino segment provided about $230 million of the total revenue. It is also one of Kindred’s offerings that took some of the heaviest hits as its revenue decreased by about 24% in the quarter to follow.
Kindred Aims to Return to the Netherlands by Q2 2022
Hjalmar Ahlberg, a prominent industry analyst, mentioned that these numbers attest to how crucial the Dutch market is to the company. Indeed, when it pulled out from the Netherlands, Kindred lost 13% of its customers. Ahlberg said that Kindred will likely recuperate once it manages to get a license, but even then its profits will suffer because of the high tax on operators.
Kindred hopes to be approved for license by the Kansspelautoriteit (the Dutch gambling authority) and to return to the Netherlands as soon as the second quarter of 2022. The operator’s chief executive officer Henrik Tjärnström said he is looking forward to “making a positive contribution to the Dutch society as a valued expert in achieving a sustainable gambling market.”
Tjärnström mentioned that Kindred plans to secure a strong foothold in the United States and recover its positions. The competition is strong but Kindred is bullish on expanding its presence on regulated markets. This strategy includes both the USA and Europe.