Kindred Group released Friday its Unaudited Interim Report for the period covering January - June 2020, which includes the company's second-quarter and first half-year highlights.
According to the report, gross winnings revenue for the second quarter amounted to GBP 235.1 million, achieving growth of 4 percent despite the significant disruption to the normal sports calendar.
"The growth was mainly driven by positive performances across a number of markets as a result of strong focus on product differentiation," Kindred Group's CEO Henrik Tjärnström explained.
Gross winnings revenue amounted to GBP 235.1 (226.2) million for the second quarter of 2020, an increase of 4 percent, and GBP 484.8 (450.6) million for the first half of 2020, the report shows.
Underlying EBITDA for the second quarter of 2020 was GBP 51.7 (30.9) million, and GBP 94.2 (62.0) million for the first half of 2020.
Profit before tax for the second quarter of 2020 amounted to GBP 31.3 (14.7) million, and GBP 33.7 (32.4) million for the first half of 2020; and profit after tax for the second quarter of 2020 amounted to GBP 26.8 (12.5) million, and GBP 27.8 (27.6) million for the first half of 2020.
The profit before tax was impacted by foreign currency gain on operating items of net GBP 1.8 (loss of 2.4) million and foreign currency losses of GBP 5.1 million (Nil) on retranslation of borrowings of which GBP 4.5 million are unrealized translation losses.
Free cash flow for the second quarter of 2020 amounted to GBP 74.3 (12.4) million. GBP 32.8 million of borrowings was repaid in the quarter and the net debt position has improved since the first quarter to GBP 61.0 million as at 30 June 2020.
Earnings per share for the second quarter of 2020 were GBP 0.118 (0.055) and GBP 0.123 (0.122) for the first half of 2020. The number of active customers during the second quarter was 1,313,399 (1,478,437).
"The decisive actions taken by Kindred to mitigate the impact of COVID-19 disruption contributed to an increase of 70 per cent in EBITDA during the quarter. The main savings were achieved in marketing, which is logical as most marketing is linked to sports events." Tjärnström added. "Over the coming quarters, we plan to increase our marketing towards normal levels in line with our long-term strategy, but we will manage this process in a cautious way. Betting duties also fell compared to previous quarters, because of the significant impact of sports in the French market, which is subject to the highest tax rates."
"Our teams around the world have worked incredibly well in the new environment, both in dealing with the challenges from the pandemic and in driving efficiency as our cost reduction program continues. Kindred remains conscious of the risk of further disruption both to sports and the wider economy, so we will continue to manage the overall cost base carefully," he continued.
"Our US business continues to develop very strongly, despite the loss of offline revenues and the disruption to sports. Gross winnings revenue amounted to GBP 6.0 million for the second quarter, an increase of 131 percent from the first quarter. After less than a year of operations, the US already accounted for more than 2.5 percent of the Group's gross winnings revenue and this share is expected to accelerate in coming quarters, especially as further states go live."
"In the period up to 19 July 2020, with approximately 20 percent higher sportsbook margins than in 2019, average Gross winnings revenue in GBP was 40 percent higher (41 percent in constant currency) and actives 21 percent higher than for the same period last year. In the US, the average daily Gross winnings revenue for the period 1 to 19 July 2020 increased by 32 percent compared to the daily average for the second quarter 2020", Tjärnström concluded.
The Kindred Group operates in locally-regulated markets through its gambling licenses in the UK, Sweden, France, Belgium, Denmark, Germany (Schleswig-Holstein), Italy, Australia, Ireland, Romania, Estonia, Pennsylvania, New Jersey and Indiana, as well as other markets internationally through its gambling licenses in Malta and Gibraltar.