Since the publication of its third quarter report on October 25, 2019, Kindred has reported that gross winnings revenues across most markets have been impacted by weak sports betting margins.
The margin after free bets was 8.1 per cent for the quarter, compared to 9.4 per cent in the fourth quarter of 2018. The gross turnover for the sportsbook increased by three per cent (five per cent in constant currencies) compared to the fourth quarter 2018.
The most significant deviation in sports betting margin occurred in France. As betting duties in France were calculated on the basis of betting turnover, the financial impact was greatly increased. From January 1 2020, the basis of calculation of betting duties in France has changed to a tax based on gross gaming revenue, which is more stable.
Kindred has continued to grow its market presence in the US. For the fourth quarter of 2019, the negative impact on the underlying EBITDA was about £6m.
Gross winnings revenue and EBITDA have continued to be negatively impacted by regulatory changes in Sweden and the Netherlands, although performance in Sweden improved significantly compared to prior quarters.
The company estimates gross winning revenue for the fourth quarter of 2019 of about £235m unaudited.
