Malta based global gaming operator with major hub offices in Gibraltar, London, Stockholm and the US; Kindred Group, has provided a public business update within the last few hours in regards to the ongoing Covid-19 crisis.
Chief executive officer at Kindred Group since 2010 Henrik Tjärnström said:
“We expect the impact of the coronavirus on our business to be temporary, with sports activities gradually resuming during or after the summer. In order to reduce the earnings impact of temporarily lower sports revenues, we will adapt our cost base through reduced levels of marketing spend, lower operating costs and delaying certain investments.”
- Kindred has had a good start to the year with gross winning revenue for the first quarter of 2020 estimated to be in the range of GBP 247-252 million.
- The gross winning revenue was positively impacted by strong sports betting margins in the period up the disruption of sports in the middle of March 2020.
- The margin before free bets was 12.2 per cent for the quarter, compared to 9.7 per cent in the first quarter of 2019.
- The full impact of cancelled sports events was largely effective from 16 March 2020, which resulted in lower sports book turnover, however partially compensated by solid growth in revenues from other products.
- As a very short-term indication, during the period 16 March to 31 March 2020, the daily average gross winnings revenue was GBP 2.2 million, which was 10 per cent lower than the average for the full year in 2019.
Kindred has a good financial position with strong liquidity and low leverage. However, due to the uncertainty caused by COVID-19 and to ensure that Kindred is well capitalized for future investment opportunities, the Board has decided to change the previously communicated proposal on the 2019 dividend and will recommend to the AGM that no dividend is paid.
Kindred has taken steps to protect employees and to ensure continuity of operations by adjusting ways of working so that, wherever possible, employees work from home. As a modern technology-based company, this has been achieved with minimum disruption to the business. Kindred is also working closely with all its partners to continue to provide an attractive sports and racing offer where possible and to be ready for normalized levels of sport activity.
“While the current situation presents several challenges, I remain very positive about Kindred’s future outlook. Kindred will continue to benefit from a wide geographical reach and a broad product mix as well as a business model which has been resilient during previous times of economic downturns. I also believe that the social and behavioural changes that are already happening will accelerate the migration from offline to online, which will benefit digital operators like Kindred. Our focus on player safety and care for our customers will naturally continue with the same dedication.”