Kindred Group is enjoying its year-on-year Q2 earnings spike despite sporting events hiatus. The Nordic online gambling operator reported that it expects revenue of around £235 million. It is for three months ending June 30.
According to the sports open place debate, the firm revenue is up from £226.2 million from the same period last year. Kindred will also release its official interim report for the second quarter on July 24.
What Causes Kindred’s Q2 Earnings Spike?
Despite the sporting events hiatus due to the COVID-19 pandemic, Kindred Group is expecting a Q2 earning spike for this year even if current customer ranks fell 11% year-on-year to £1.3 million.
Amid the lack of live sports and the sports betting opportunities dried up, Kindred still says they have “solid growth. It is through offering other gambling products in which becomes its option. These include eSports betting and virtual sports betting, such as FIFA and F1 events.
Furthermore, according to sources of sports betting odds, partial compensation is also from the gradual resumption of the major sports events. This also falls on the latter stage of the quarter that contributes to its revenue.
Other Contributing Factors for Kindred’s Earnings
Kindred earnings got further boost from its reduction in its marketing, content, and other direct costs. While the company is enjoying its short-term boost, it is still cautious about the sustained cuts. And it might cause a long-term competitive position of the business to lift its products.
The lack of major sporting events was not entirely problematic as per sources of sportsbook reviews. It is because of the reduced betting duties that Kindred owes local governments—especially with France, having the most substantial impact in this area due to the market’s high tax rates.
Kindred, on the other hand, have not mentioned its casino and poker performance, likely due to the current media or regulatory focus. As it will be whether the customers deprived of sports betting will transfer to riskier gaming products. It may be in the likes of online slot machines.
