Kindred Profits Fall in First Half

Online gambling firm Kindred Group has published their first-half financial results, noting that profits slipped due to regulatory changes in Sweden.

Key financial indicators for the first half ending June 30th, 2019 were:

• Revenues of £450.6 million, up 6% from last year
• Cost of sales up 19% to £201 million, which included a 32% increase in betting duties
• Gross profit down 3% to £249.6 million
• EBITDA of £61 million, down from £88.8 million last year
• Operating profit down to £37.2 million
• Pre-tax profit down 32% to £32.4 million
• Net profit down 50% to £27.6 million

Commenting on the performance Kindred CEO Henrik Tjärnström said, "As we have highlighted for a long time and as we saw in the first quarter of 2019, the new licensing regulation in Sweden has resulted in significant short-term margin pressure driven by higher betting duties but also higher marketing as we are investing for the longer term.

"In the Swedish market, we saw a significant improvement quarter-on-quarter, but EBITDA contribution was still down £9.2m when compared to the second quarter last year."

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