Online gambling operator Kindred Group’s profits for the second quarter of 2019 have shrunk by almost 50 percent. The company blames the changing gambling regulations in Sweden for plummeting earnings.
The gambling operator posted total revenue of £226.2m in the second quarter of 2019 ending June 30 which is a 3 percent decline when compared with the revenue generated during the same period the previous year. However, the company’s earnings dropped by nearly 50 percent year-on-year to £12.5m after tax.
Kindred CEO Henrik Tjärnström said that the dip in the profit was not surprising as in Q2 of 2018 the company benefited from the major football event, the FIFA World Cup.
He also said that their earnings from Sweden suffered because of the increased taxes and marketing costs amidst changing regulations.
The Kindred Group spent nearly 29 percent of the revenue generated in Q2 on marketing. However, the company’s active customer base was down 5 percent from the previous year to 1.48m.
While Kindred did manage to post a 4 percent increase in sports betting revenue to £108.9m in Q2, the company’s business in Nordic markets suffered as its revenue fell by 7 percent year-on-year to £24m.