indred has delivered its strongest quarter ever with gross winnings revenue at an all-time high of nearly GBP 365 million (USD 496 million), representing annual growth of 55%.
The company attributed the results to continued strong activity across its markets and products, and record active customer numbers of 1.78 million, an increase of 11% compared to the same quarter last year. Gross winnings revenue growth was also supported by a slightly higher than normal sports betting margin, which was approximately 10% (after free bets) for the quarter, compared to the long-term average margin of around 8.5%.
Underlying EBITDA for the fourth quarter of 2020 is estimated to be approximately GBP 115 million (USD 156.39 M), up from GBP 30.7 million in Q4 2019, which is significantly higher than the current consensus. The main contributing factors for this increase are the strong revenue growth, combined with Kindred's continued focus on operational efficiency and costs, according to the company.
The level of marketing investment has gradually increased during the second half of the year and during the fourth quarter the total marketing spend was around 13% higher than in the fourth quarter of 2019. Although marketing spend increased between the third and fourth quarters of 2020, the significant increase in revenue and improved marketing efficiencies have meant that marketing spend was approximately 21% of Gross winnings revenue for the quarter. Despite a drop in marketing spend during the pandemic, Kindred's share of voice has increased throughout 2020.
The year-end report for 2020 will be published on 10 February 2021.