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Kindred Group Revenue Up 32% Thanks to 32Red

2017-08-08 11:26:49

The Kindred Group is a Stockholm based online gambling operator which consists of 13 top casino brands including Stan James, iGame, Unibet and 32Red. The company offers online gaming products such as online casino, online poker, online bingo, sports betting, scratch cards, soft games and live betting to over 16 million customers across 100 markets. The Kindred Group aims to offer their customers the best user experience possible while ensuring a safe and fair gambling environment. The company is known for innovation and development in areas such as technological advancements, mobile solutions, new product launches and player safety and responsible gambling improvements. In June, the Kindred Group acquired the 32Red online casino which has seen a 32% jump in their profits for Q2.

32Red Takeover

On June 7th, the Kindred Group announced the takeover of online casino operator 32Red. Under the deal, the Swedish company paid 196p a share for the company, a total of £175.6m. The purchase came after 32Red had a record breaking 2016, reporting a revenue of £62.5m. The event was described by the Kindred CEO, Henrik Tjärnström as “the single most important event of the quarter”.

It was the Kindred Group’s first takeover since the company acquired both Stan James and iGame in 2015. At the time Henrik Tjärnström outlined the reasoning behind the purchase; “The acquisition of 32Red is consistent with our multi-brand strategy and stated a desire to grow our business in regulated and soon to be regulated markets. 32Red is a high quality, customer-focused business with a similar culture to Kindred’s and we are delighted to welcome 32Red and its team into the Kindred Group and look forward to further developing the brand going forward.”

Record Profits

The takeover of 32Red already looks like a shrewd move for the Kindred Group. Figures released on July 26th show that the company’s revenue for the second quarter of 2017 is up 32%. The company recorded record revenue for the three-month period from March to June hitting £166.6m. That’s increase of £53.3m on the same period last year. £4.7m of the jump in revenue has been attributed to 32Red. The company expects revenue from 32Red to increase again in Q3 as its operations are further incorporated into the Kindred platform.

The Kindred Group also described “strong organic growth” across all of its products and regions. Sports betting turnover increased by 28% to £1.15b in Q2 while sports revenue jumped 30% to £73.2m. Casino and games revenue was also up 30% hitting £84.3m with poker revenue rising 50% to £3.9m giving Kindred the fastest growing licensed poker network in the industry. The Kindred Group has traditionally relied on the Nordic online gaming market but has seen a big increase in players from Western Europe joining the platform. Western Europe market revenue increased 41% to £83.8m and now makes up 50% of the group’s overall player network.

Announcing the company’s financial figures for Q2 the Kindred CEO, Henrik Tjärnström, was quick to highlight 32Red’s contribution to the improved revenue; “The acquisition of 32Red will significantly accelerate our development and profitability in the world’s largest locally regulated market. Gross winnings revenue from the mobile channel grew by 52 per cent and accounted for 73 per cent of total Gross winnings revenue in the second quarter”.

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