The Kindred Group, increasingly active in the US sports betting sector, has published its financials for the third quarter and highlights for the period January to September. The firm cited firm progress in the States, but revealed a loss of $2.3m on investments there.
CEO Henrik Tjärnström explained in the update that while the outlook remains positive for the firm’s US ambitions, they have come at a cost. “During the quarter, we launched the Sportsbook product in New Jersey and the Unibet Sportsbook Lounge in Pennsylvania, with the online products to go live in November,” he said.
“This will be a great opportunity to deliver revenue growth and eventually profit in the longer term. Our investments in the USA in the third quarter incurred an EBITDA loss of £1.8 million ($2.3m).”
Looking at Kindred’s overall performance in the update, gross winnings revenue amounted to $290m for the third quarter of 2019, and $868m for the period January to September 2019. Underlying EBITDA Q3 was $47.8m, and $126m for January to September 2019.
In all, the group offered 57,834 live betting events in the third quarter of 2019 and streamed 34,367 events on desktop and mobile devices. The majority of the group’s business is determined by the seasons for key sports such as the major football leagues in Europe, major golf and tennis tournaments, ice hockey leagues in the Nordic countries and North America and sports and racing in Australia.
“The seasonality of these events results in fluctuations in the group’s quarterly performance, especially in terms of the amounts staked. However, quarterly results can also vary widely, due to the volatility of gross winnings margins in sports betting,” it noted.
