Kindred Group's revenue decreases in second quarter of 2022

The leading online gambling operator, Kindred Group, released its unaudited financial results for the second quarter and half year of 2022. The company acknowledged in a statement released Friday, that its total revenue for the half year hit £485.4m ($581m). The company's underlying EBITDA halted at £49.8m ($60m), marking a 77%decrease. For the half year 2022, Kindred's profit before tax was £14.6m ($17.5m), while its profit after tax hit £12.2m ($14.6m).

When it comes to the second quarter of 2022, the company acknowledged its revenue decreased by nearly 30% to £238.7m ($285.7m). Similarly, in Q2 2022, underlying EBITDA decreased as well. According to Kindred's latest report, underlying EBITDA in Q2 this year halted at £25.3m ($30.3m), down by 78%. The company's profit before tax in Q2 was £7.0m ($8.4m), while the profit after tax hit £5.8m ($6.9m). For the second quarter, Kindred's number of active customers was 1,336,706.

Henrik Tjärnström, Kindred's CEO, acknowledged in a statement that the second quarter "is a seasonally low period of activity as sports leagues end." He pointed out that the major football tournaments take place every other year. Tjärnström pointed out that the fewer sports events resulted in a year-on-year decline of 28% for the company's sports betting revenue, excluding the Netherlands.

Despite the decline in sports betting revenue, Kindred's CEO remained optimistic. He revealed that the company has progressed on key strategic priorities. He said: "We have received our long-awaited Dutch license, our Kindred Sportsbook Platform (KSP) remains firmly on track, and Relax Gaming continues to show strong numbers. We are also nearing the end of a period of very tough COVID-19 comparatives, which have been giving a skewed view of our performance."

Early in June, Kindred received its license from the KSA, the Dutch Gambling Authority. One month later, on July 4, the company started to accept Dutch players. On that topic, Tjärnström outlined that Kindred has seen an increase in customer engagement between July 4 and July 19. He added: "I am very pleased with this initial performance and expect to see our Unibet brand gradually reclaim a leading position in the Netherlands."

Focusing on the UK market, Tjärnström said that the Group felt the impact of the self-imposed tougher affordability checks. He predicted that the stricter affordability checks may continue to impact the company's operations further. However, Tjärnström said that while those restrictions impact the Group's revenue in the long term, ultimately, they will help shape a "more sustainable customer base."

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