Underlying EBITDA for the quarter surged to £73.6m, representing a significant 32% increase compared to Q2 2023. The profit before tax also showed robust growth, climbing by an impressive 68% to reach £55.6m.
Revenue from gross winnings saw year-on-year growth of 6% or an even more substantial 12% when excluding North America. This positive trend can be largely attributed to expansion in locally regulated markets, driving the overall revenue to £208.4m.
The strong financial results underscore the company’s strategic focus on penetrating and growing within regulated markets, which continue to deliver consistent revenue streams. This positions the company favorably for future financial performance and market competitiveness.
The notable increase in EBITDA and profit before tax reflects the company’s operational efficiency and robust management strategies. These figures not only highlight the company’s financial health but also signal strong investor confidence moving forward.
As the company continues to adapt to market conditions and expand its footprint in regulated regions, it remains well-positioned to sustain its growth trajectory. The momentum gained this quarter sets a promising outlook for the remaining fiscal year.
Strong performance in key markets
Impressive growth in revenue across Western Europe powered the group’s overall performance, particularly in the Netherlands, Belgium, and France. The standout growth figures include a 17% increase in the Netherlands, a 12% rise in Belgium, and an astonishing 41% surge in France.
Exceptional market share gains in France
Active customers in France saw a notable increase of 26%, as Kindred seized significant market share in the country during the quarter. This uptick clearly underscores the company’s strategic efforts to expand its footprint in the French market.
New regulatory measures in the UK lead to slowed market growth
The UK market has experienced a significant shift following the introduction of new regulatory measures, resulting in a slowed growth rate of 4% during Q2. Despite these changes, Kindred Group believes it has maintained performance in line with the overall market dynamics.
Performance analysis in key markets
UK Market:
The introduction of stringent regulatory requirements has undeniably impacted the UK market’s growth trajectory. The growth rate has reduced to 4% in the second quarter, reflecting the market’s adaptation to the new compliance landscape. This slowdown marks a critical phase for stakeholders who must navigate these changes carefully.
Swedish Market:
Meanwhile, in Sweden, Kindred Group witnessed a 3% decline in gross winnings revenue. However, there is a silver lining as the market shows signs of improvement. The company is optimistic about reversing this decline through strategic initiatives and enhanced customer engagement.
Positive impact of the Euros tournament on sports betting
The commencement of the Euros tournament has had a favorable impact on sports betting revenue. The increased engagement and betting activity driven by the tournament have contributed positively to the overall financial performance. This boost is a testament to the significant influence major sporting events hold over the betting industry.
Key metrics overview
| Region | Q2 Growth Rate | Gross Winnings Revenue |
|---|---|---|
| UK | 4% | – |
| Sweden | -3% | Slight improvement expected |
Kindred Group remains vigilant and proactive in adjusting its strategies to align with the continuously evolving regulatory environment. The company is committed to leveraging these challenges as opportunities for growth and innovation in the competitive betting industry.
Lower marketing costs and improved ROI contributed to improved quarterly results, with marketing as a share of revenue decreasing from 9.9% to 8.4%. Kindred’s focus on improving marketing efficiency and investments in growth markets and channels was highlighted in the report.
