Kindred Expects Strong Year despite Q3 Decline

Online betting and iGaming operator Kindred Group released its official Q3 earnings statement, detailing the company’s current financial status and prospects. The Stockholm-listed operator’s year-on-year revenue dropped by 7%, but the management team remains confident in future success thanks to the strong Netherlands launch and the upcoming World Cup.

Financial Results Were Less than Stellar

Kindred’s Q3 results indicate a slowdown among many essential verticals. The operator recorded £277.8 million ($322.4 million) in revenue, a £20.6 million drop compared to Q3 2021. Gross winnings revenue for the company’s B2C sector decreased by 9%, reaching £271.9 million ($315.6 million). However, it is worth noting that excluding the Netherlands, gross winnings revenue increased by 8%, signifying the importance of that market.

The metric that took the biggest hit is Kindred’s underlying EBITDA, which dropped by 52% to £40.3 million ($46.8 million). However, the operator still recorded a net profit of £57.9 million ($67.2million) and holds a substantial amount of cash, so there is a real possibility that the results for the final quarter will turn the trend around.

The Dutch Market Continues to Stabilize

According to Kindred CEO Henrik Tjärnström, the operator managed a strong finish despite Q3’s slow start. He drew attention to the Unibet.nl band’s successful relaunch in the Netherlands after a nine-month hiatus due to regulatory changes.

Thanks to our strong brand awareness, unique product offerings, and an excellent team, we … estimate to achieve a 15 percent market share in the Netherlands in the fourth quarter.

Henrik Tjärnström, CEO of Kindred Group

Tjärnström confirmed that the Dutch re-regulation continued to exert margin pressures but expressed confidence that the worst had passed and the underlying metrics would begin improving during Q4. The operator managed to grow its Dutch player base to 137 thousand, which is a hopeful sign.

Kindred Has Potential for Considerable Q4 Growth

The Kindred CEO avoided drawing comparisons to the previous quarter, focusing instead on market growth compared to Q2, and expressed optimism about the company’s prospects. Like all other sportsbooks, Kindred is awaiting the Qatar World Cup in November and December. The busy schedule and mounting excitement around the event should substantially boost customer acquisition and reactivation and prop up Q4 results.

The UK is another significant market for Kindred. The ongoing political instability has put the government’s planned gambling reforms on hold, leading to mounting uncertainty among operators. However, Tjärnström was optimistic that the situation would soon reach a favorable resolution.

While we expect increased affordability requirements, we remain positive on the clarity of future regulations and believe that… risk levels will decrease.

Henrik Tjärnström, CEO of Kindred Group

Overall, Kindred’s Q3 results appear underwhelming, but the drop mostly seems to be due to outside factors that the operator is already taking steps to mitigate. With several positive events coming up, the company still has the potential for a great Q4.