Malta-headquartered Kindred Group has announced pre-tax profit of £95.4 million (€113.5 million) for the first half of 2024, a substantial increase of 50.2 per cent over the same period in 2023 (£63.5 million or €75.6 million).
The figures were published as part of the company’s interim report for the first six months of the year, during which it signalled a steady path towards its annual guidance.
Kindred Group was founded in 1997 with the aim of providing customers with a better and safer way to bet in the modern digital world. Since then, it has established significant market share in key regulated markets across the globe. While it is listed on Nasdaq Stockholm Large Cap, it is registered in Malta, with an office in Valletta.
The group recently had to exit the North American market, a decision that was taken following an extensive strategic review. This had driven a 53 per cent decrease in pre-tax profit during 2023.
In the report, Kindred Group stated that total revenue recorded in the first half of 2024 came in at £635.3 million (€756.1 million), equivalent to a 3.5 per cent increase from the same period last year.
Gross winnings revenue was also on the rise, going up by 3.2 per cent to £614.8 million (€731.7 million).
It was noted that following the group’s closure of its locally licensed North American operations, the condensed financial statements have been updated to present the continuing and discontinued operations separately.
The underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) totalled £132.9 million (€158.2 million), surging by 26.5 per cent from the £105.1 million (€125.1 million) that was registered in the first half of 2023.
The group also provided the results for the second quarter of 2024 (Q2 2024) separately, in which it stated that total revenue amounted to £327.6 million (€389.9 million), rising from Q2 2023’s £307.3 million (€365.7 million). It recorded a pre-tax profit for the quarter of £55.6 million (€66.2 million), up from the £33.1 million (€39.4 million) registered in the same period last year.
In Q2 2024, Kindred Group’s number of active customers also increased by 12.1 per cent to 1.7 million.
Commenting on the results, CEO Nils Andén remarked that the Q2 2024 results build on the group’s solid start to the year.
“We continue to demonstrate our resilience and strategic execution, which is reflected in our strong performance across our market portfolio. The vast majority of our top markets have grown year-on-year, which is very encouraging,” he stated.
He said that Kindred Group’s development in locally regulated markets has been “particularly strong,” with its gross winnings revenue from these markets growing by 10 per cent (12 per cent excluding North America).
“The second quarter contained strong sportsbook activity throughout, with Euro 2024 boosting customer engagement towards the end of the period. Favourable results, in combination with a record share of bet builder activity, delivered a historic high sportsbook margin of 12.1 per cent. This is considerably higher than the long-term average margin of 9.9 per cent and we expect to see some normalisation in the second half of 2024,” Mr Andén continued.
