Difficulties in key igaming markets saw Kindred Group’s revenues dip in the third quarter.
Gross winnings revenue amounted to £226m (£230.7m) for Q3 2019, with the figure for the period January to September 2019 standing at £676.6m (£657.5m).
Underlying EBITDA for Q3 was £37.2m (£55.7m) and £98.3m (£144.9m) for the first nine months of the year. Profit after tax for Q3 was £18.1m (£36.9m) and £45.7m (£92.3m) for the period January to September 2019.
CEO Henrik Tjärnström said: “Similar to what we saw in the first half of 2019, re-regulation in Sweden resulted in difficult market conditions in the third quarter. The current terms and conditions make it challenging to attract customers into the system and can lead to worsening channelisation. This, in combination with a lower than usual sportsbook margin in September, resulted in significantly lower gross winnings revenue and a £12.8m decline in EBITDA contribution from Sweden compared to the third quarter in 2018. We also continue to experience headwinds in the Netherlands due to the removal of the iDeal payment solution.”
“Outside of Sweden and the Netherlands, we continued to see strong growth in several other markets, including the UK and France. Locally licensed revenue growth was particularly strong with 33 per cent growth, or 13 per cent growth excluding Sweden, compared to the same period last year. As expected, this resulted in margin pressure from higher betting duties which increased with 26 per cent compared to the same quarter last year. However, this focus will drive more sustainable future profit growth. Locally licensed markets were 57 per cent of overall gross winnings revenue in the quarter.”
