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The financial report of Kindred Group for Q3 2020

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Kindred acquires Relax Gaming to strengthen its focus on product differentiation and customer experience
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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.

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BGC Grand National Charity Bet Campaign Raises Thousands for Good Causes Across the Country

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The Betting and Gaming Council (BGC) has raised over £15,000 for good causes as part of its annual Grand National charity betting initiative.

Over 50 parliamentarians placed a charity bet on Saturday’s Grand National, with the UK’s biggest betting operators handing over all winnings to the MP’s charity of choice.

The eventual winner was 7/1 favourite I am Maximus, ridden by Paul Townend, owned by JP McManus and trained by the legendary Willie Mullins. The Grand National win for a Mullins trained horse comes nine years after Hedge Hunter romped home in 2015.

The parliamentarians who backed the winner were Christian Wakeford MP, Maria Caulfield MP, Justin Tomlinson MP, Greg Smith MP, Peter Aldous MP, Preet Gill MP and Liam Kerr MSP.

While Bob Blackman MP had a winner with an each way bet by backing Ain’t That A Shame which came in sixth.

Some of the winning good causes included Sir Jackie Stewart’s Race for Dementia, Raystede Centre for Animal Welfare and The Fed – social care charity for the Greater Manchester Jewish Community.

Other MPs who took part included Sir Alok Sharma, Dame Caroline Nokes and Scotland Minister John Lamont.

Shadow Gambling Minister Stephanie Peacock MP also took part alongside Shadow Defence Secretary John Healey MP.

During visits, MPs heard from staff about the range of safer gambling measures available to customers in bookmakers.

However, every nominated charity will receive at least £250 after BGC members including William Hill, Ladbrokes, Coral, Paddy Power and Betfred pledged to support charities even if MPs horses didn’t win.

These donations, combined with the winners, raised a total of £15,115.

BGC members – large and small – have raised more than £6 million for good causes since its formation in 2019.

Michael Dugher, chief executive of the BGC, said: “600 million people from all over the world tuned in to watch one of the best Grand Nationals ever, including millions in the UK on ITV. An estimated 12 million people in the UK – roughly a third of adults – enjoyed a bet on the National showing once again that for millions of us having a flutter is part of our great British culture.

“I want to pay tribute to all the thousands of people who work in betting shops to help support hard-pressed high streets and local economies. I would like to thank all those MPs who took part for supporting so many fantastic good causes and for taking the time to visit constituents working in betting shops. We had more MPs than ever before, from right across the political divide, ministers and shadow ministers, supporting the BGC and supporting the Grand National. I would like to thank all of our members for once again supporting the initiative.”

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Baltics

New Survey Reveals 80% of Lithuanians Would Welcome a Ban on Gambling Ads

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Eight out of 10 Lithuanians would approve of a ban on gambling ads in the country, a new survey revealed.

The survey commissioned by public broadcaster LRT was carried out by the public opinion and market research company Baltijos tyrimai. It showed that 80% of respondents aged 18 years and over are in favour of a complete ban on gambling ads in Lithuania and just 15% would oppose the move.

It has transpired that approval of the gambling ad ban was greater among women than men – 86% against 72% respectively. The move has also wide support among residents aged over 50 (84%) and by people with greater than secondary education and with monthly household income of up to EUR 1100 (85%). Opponents of the ban often include men (21%), young people under 30 years of age (23%), rural residents (18%) and people with unfinished secondary education (30%). 1115 adult residents of Lithuania were polled on 15-25 March.

In mid-March, parliament began to consider amendments to the law on gambling, which, if adopted, would prohibit gambling advertisements as of 1 January 2025.

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Australia

SkyCity Appoints Jason Walbridge as Chief Executive Officer

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SkyCity Entertainment Group Limited has appointed Jason Walbridge as its new Chief Executive Officer.

Jason has more than two decades of senior executive public company experience in the global land-based and online gaming industries. He is currently a Strategic Advisor to global gaming and technology company Aristocrat Leisure Limited on its proposed acquisition of NeoGames S.A, and Executive Chairman of National Entertainment Network LLC, the largest amusement route operator in the US. He has been appointed to the role after an extensive international search.

SkyCity Board Chair Julian Cook said: “The Board is delighted to announce Jason’s appointment as CEO of SkyCity, and we are looking forward to the valuable contribution Jason will make to the business. Jason has extensive global experience in the land-based and online gaming industries, which will position him well to lead SkyCity through its next phases.”

Mr Walbridge said: “It will be a privilege to lead SkyCity, and I am excited to be joining the business at this time as SkyCity looks to pursue the many opportunities ahead of it.”

Mr Walbridge is expected to start in early July 2024, following his move back to New Zealand.

Prior to his current roles, Mr Walbridge held roles with the online gaming supplier NYX Gaming Group Limited and its acquirer Light & Wonder Inc, and before that he spent 18 years with Aristocrat Leisure Limited where he held executive leadership roles in New Zealand and the US. Previously, he held senior roles within consulting, including with Ernst & Young, and was an Officer in the New Zealand Defence Force. Mr Walbridge holds an MBA in International Management from the Auckland Institute of Studies.

Mr Cook confirmed that Callum Mallett will continue as Interim Chief Executive Officer until Mr Walbridge’s commencement date.

“I’d like to thank Callum for his continued leadership and his support during this period,” Mr Cook said.

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