Casino growth offsets slow Q3 sportsbook performance for Kindred

Kindred CEO Henrik Tjärnström. Image source: Kindred Group

Growth in casino revenue has helped offset slow performance in sportsbook business for Kindred Group Plc, which operates in the US sports betting sector via the Unibet brand. 

Publishing its Q3 2021 interim update today, the firm recorded gross winnings revenue ahead by 6% to $409.3m ($385m), with underlying EBITDA up 13% to $115.5m ($102.3m). Profit before tax amounted to $98.5m ($83.3m).

In the first nine months of 2021 gross winnings revenue increased by 33% to $1,391.7m ($1,049.9m). Underlying EBITDA in the period grew by 76% to $406.7m ($231.5m), while pre-tax profit came in at $356.1m ($129.5m).

CEO Henrik Tjärnström told investors: “After a relentless sporting calendar and subsequent low sports seasonality, sportsbook activity slowed as options for other sources of entertainment improved. 

“However, it was pleasing to see continued strong casino activity generating an increase in casino gross winnings revenue of 16% £168.3m ($230.8m) versus the same period last year, which is testament to our strong multi-product offering.”

He added: “On 1 October 2021, we concluded the acquisition of Relax Gaming as planned. This is a great development for Kindred as it further enables us to significantly differentiate both new and existing products, ultimately giving us more control of the offerings and providing our customers with a better experience.”

Kindred Group, through its Unibet brand, most recently became operational in Arizona via its multi-state partnership with the Quechan Tribe of the Fort Yuma Indian Reservation, broadening its US footprint to six jurisdictions and taking a first step toward the West Coast.