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The financial report of Kindred Group for Q3 2020
The third quarter of 2020 helped Kindred Group, one of the world’s leading online gambling operators, to regain its growth through a massive rebound due to sports competitions beginning again all over the world.
How exactly did that happen and why?
Here is a detailed financial report of the group for July – September:
For a start, the main takeaway is that the third quarter had a huge growth comparing to Q1 and Q2, given that the majority of the sport events came back in summer. This translated into a rise of 21.2% of the overall sums bet by the players, comparing to the same quarter of 2019.
The amount may be incredible, but the first two quarters were off target. The first (Q1) translated into a loss of 14.7% comparing to the same timeframe in 2019. The second quarter went even more under the 2019 threshold: The decrease was almost 38% comparing to the same 2019 quarter.
The general line of Q3 is this: A strong rebound of sports, and a growth driven by the locally regulated markets.
Speaking of the strong rebound of sports, Kindred Group continued to see a strong demand for sports and entertainment from the customers. Some countries, like France, returned back to the levels recorded at the beginning of the year.
But the Q3 growth wasn’t related only to sports betting, but to activities in casinos – related to games, poker and other products. These activities somehow compensated for the temporary loss in the Sportsbook during the spring decrease.
Poker and casino games continued though to remain strong despite the return of the sports, thus keep on contributing to the overall success for Kindred Group. And all the growth was helped also by the accelerated migration from offline to online.
For instance, casino and games represent more than half of the gross winning revenue for Q3 (52%), but in a solid decrease. That is not a bad sign, instead it is explained by the rebound in live betting for the July – September quarter.
Then there are the locally regulated markets, which drove the growth by +13%, year-to-year. For example, the revenues in Sweden are growing steadily with improving sustainable profit contribution during 2020.
Big focus on the United States
Henrik Tjarnstrom, the CEO of the Group, explained that there is still more besides the strong Sportsbook activity and the locally regulated markets which contributed to the steady growth. For example, the dedicated team continuing to make a difference, and also the encouraging developments in the United States.
The company’s aim is to be live in at least five states by the end of 2021. For example, the launch in Illinois is expected to be in early 2021. Then, in Ohio, the launch will happen most likely later in the same year. At the end of July, Kindred became live in a total of three states after launching in Indiana.
“The US is a key investment market where our team have been working hard to go live in our third state, Indiana, during the quarter. (…) It is encouraging to see the continued strong growth in the US, with the market share in Pennsylvania reaching above 5 per cent during the third quarter. With New Jersey and Indiana also growing steadily, I expect the US to become one of Kindred’s largest markets during the next couple of years”, said Tjarnstrom.
So, here are some interesting conclusions after the Q3: The most important is that Kindred Group managed to overcome the difficult moment earlier this year when the industry (and many others) experienced a slippery slope due to the worldwide sanitary measures. Also, the sports returned faster than expected, and the financial position is a strong one at this point. Cost control was, well, under control, and the operators, authorities and regulators will need to cooperate closely for a sustainable gambling market.
Last, but not least, there is this: There are two years of sport coming.
About Kindred Group:
Kindred Group is one of the world’s leading online gambling operators with business across Europe, US and Australia, being founded in 1997 by Anders Strom. Its headquarters is in Malta.
The company consists of 11 brands, with Unibet being its flagship. It offers online casino, online poker, and sports betting, with hundreds of events available. The Group has more than 27 million customers, who can enjoy a safe, fair and sustainable form of entertainment.
Kindred Group has more than 1,600 employees, and it is listed on the Nasdaq Stockholm Large Cap. Also, it is a founding member of ESSA – sports betting integrity. The company passed one billion dollars in revenue in 2019, and the numbers are expected to be similar in 2020.
Latest News
7-Eleven selects Jackpot.com as their official lottery partner
Online Lottery Courier Service Jackpot.com Announces Exclusive Collaboration with 7-Eleven, Inc.
Jackpot.com will serve as the official lottery courier service of 7-Eleven, Inc., initially launching in Ohio and Massachusetts
Jackpot.com – the online lottery courier service that allows consumers to purchase official state lottery tickets on their phone, tablet, or computer – announced today an exclusive collaboration with 7-Eleven Inc., the largest convenience store chain in the world, to serve as their official lottery courier service.
As part of the collaboration, 7-Eleven customers in Ohio and Massachusetts will be able to sign up and play lottery games and scratchers on the Jackpot.com app or website. The program will initially be launched in over 600 7-Eleven and Speedway stores in Ohio and Massachusetts, with a special launch promotion that gives 7-Eleven customers a free lottery ticket on their first deposit by using promo code, “7Eleven”.
“We’re thrilled to work with 7-Eleven, the leading retailer of lottery tickets in the country,” said Akshay Khanna, CEO and co-founder of Jackpot.com. “Leveraging our technology and innovation, we can provide additional convenience for their customers, while adding an additional source of revenue. A true win-win relationship for all.”
By launching in Ohio and Massachusetts in 2023 and 2024, respectively, Jackpot.com aims at adding another avenue for player convenience with one of the most widely recognized brands in the convenience-retailing space. With a presence in Ohio, the nation’s seventh-largest lottery market, and Massachusetts, whose state lottery produced $1.2 billion in net profit for the Commonwealth during the 2024 fiscal year, Jackpot.com’s collaboration with 7-Eleven represents an added layer of accessibility for players.
Jackpot.com remains committed to responsible play and has significantly invested in protocols by allowing customers of legal age to set spend limits and limits on daily deposits, all while providing access to local and national responsible gambling resources, self-exclusion, self-suspension and automated notifications that offer help should problematic behavior be detected. Jackpot.com is also the only lottery courier service to launch with an iCap certification from the National Council on Problem Gambling.
To learn more, visit jackpot.com. First-time users can also download the official Jackpot.com Lottery App on the iOS or Android App Stores, where available.
eSports
The World Esports Summit 2024 Is Here!
The IESF World Esports Summit returns this December to Busan, South Korea. Hosted at the Busan Esports Arena (BRENA) from December 5-6, the Summit will bring together prominent figures from Esports, global brands, government officials, and sports executives for a deep dive into the current Esports trends, its rapid transformations, and future challenges.
This year’s theme, “Building Bridges, Not Barriers, Through the Power of Esports,” will highlight the role of Esports in uniting cultures, ideas, and industries. Under the slogan “We Empower Success,” the
Summit provides a great platform for Esports experts to engage in meaningful discussions and sessions, sharing their insights on trends and presenting forward-looking ideas for our industry.
The event, strategically timed at the close of the competitive season, presents a perfect environment for reflection on the year’s biggest events, industry shifts, and the next steps for Esports. Attendees can follow the expert’s perspectives on topics like:
- (R)Evolution in Esports
- East Meets West
- Esports Integrity: The Role of Referees
- The Rise of International Esports Competitions
- (In Korean) Korea’s Secret Sauce etc.
Also, featured at this year’s event are the IESF World Esports Training Camp and the World Esports Referee Academy.
These are very important IESF programs that are aimed at advancing the skills and professional standards of the next generation of Esports leaders.
Join us in Busan for two days designed to inspire, connect, and empower the international Esports community.
Registration for the World Esports Summit is free and open to all interested attendees.
To register, please complete our online registration form: iesf.formstack.com/forms/wes2024_participation_registration
See you in Busan!
eSports
Akhil Sarin CMO at Easygo named as key note at ICE Esports Conference
Clarion Gaming has confirmed that Akhil Sarin CMO at Easygo, the technology powerhouse behind the success of global brands Stake and Kick will headline the Esports & Games Conference (EGC) taking place on 21 January as part of the ICE Barcelona experience. As a key member of the executive team, Akhil Sarin has been instrumental in securing the high-profile partnerships that have accelerated Stake’s growth, including the Stake F1 team, UFC, Drake, and Premier League Everton FC.
Through these strategic alliances he has amplified Stake’s brand presence at the same time as creating unique, immersive player experiences, in the process setting new industry benchmarks.
Announcing the high profile speaker Will Harding, Head of Esports at Clarion Gaming said: “Securing Akhil Sarin as EGC key note at ICE Barcelona represents a remarkable opportunity for our attendees to gain invaluable insight into cutting-edge strategies in digital and influencer marketing .
“Akhil’s expertise with Stake and Kick.com embodies the forward-thinking, innovative approach that defines the digital marketing landscapes. His participation underscores the calibre of knowledge-sharing that we are committed to delivering at ICE and he is sure to both inspire our attendees and elevate their strategic perspective.”
Looking ahead to ICE Barcelona, Akhil Sarin stated: “Collaborating with Clarion Gaming at ICE Barcelona is an exciting opportunity to showcase Stake’s journey and continued focus on bold partnerships and creative marketing strategies that resonate with audiences.”
He added “The EGC is a vital platform for exchanging transformative ideas and shaping the future of gaming and entertainment. I look forward to discussing Stake’s vision and collaborating with industry leaders to inspire growth and innovation across the sector.”
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