Kindred posts strong yearly financials, and the acquisition of slot provider, Relax Gaming can prompt even further room for growth. (Images by Isaac Smith at unsplash.com)
In what turned out to be a record-breaking year for Kindred Group, the online gambling group declared revenue figures of £1.26 billion.
Of this figure, revenue generated by casinos and games resulted in the biggest contribution, with a total amounting to £648.7 million. This figure represents a 12% increase from the previous year, which generated £579 million. Some way behind, but a significant figure nevertheless, was the revenue generated from sports betting, which accounted for £547.2 million. The £28.5 million excess was generated through a variety of other sources.
Of all the regions that Kindred operates in, it was proven that Western Europe had been the most lucrative for the group in 2021, as it announced £798.4 million in generated revenues, representing a 13.1% gain on the year previous. It was also a successful year in the Nordic region, with revenues of £287.8 million. Eastern, southern, and central Europe added combined revenues of £110.5 million.
In terms of expenditure, marketing cost the group £234.7 million for the year, and the expense of admin came at £235.7 million, making the total cost to operate for the year £470.4 million. There were growth costs of £16.5 million, which came due to personal restructuring, acquisition, and merger expenses.
There was an extra £75.5 million for Kindred, which it obtained from equity interests and regulatory sanctions, as well as £2.4 million from additional income.
The total profit on operations was £342.2 million, which represented an increase of 66.2% when compared to the year before. When considering the finance costs of £6.2 million, £43.1 million in income tax, the post-tax profit was £295.3 million for Kindred. This figure marked a 78.8% increase from the previous year and made it the strongest year to date.
Acquisition of Relax Gaming, and a Promising Looking 2022
2022 should be an even more profitable year for Kindred. On October 1st 2021, Kindred Group completed its takeover of Relax Gaming, after it had previously announced in July that they had struck a deal to purchase the remaining 66.6% of shares, capping off a very successful year for the group. That will mean there will be more revenue generated through the Relax Gaming brand. In addition to that, 2022 will feature the FIFA World Cup and the Winter Olympics. So, naturally, Kindred will expect to generate more revenue than usual throughout these periods.
Henrik Tjärnström, Kindred CEO, mentioned the tough challenges that Kindred faced throughout 2021 after such a successful 2020. After acquiring Relax Gaming, Kindred cut ties with the Dutch market, meaning a shortfall in revenue from that region. Despite that, however, the revenues for the fourth quarter remained solid. Tjärnström stated that the company is excited about moving into an action-packed 2022, and there will be high expectations moving forward.
Kindred strengthened its sportsbook too, after finalizing a deal with Kambi, the betting supplier for sports. Kambi will now use Kindred sportsbook for 3 years until 2026.
Relax Gaming Adds Slot Value for Kindred: Right around the time of the acquisition, Relax Gaming released its epic new video slot to celebrate its new owners. Mega Mine Nudging Ways very quickly built a fan base for its gem-filled action. Volatile Vikings, Dead Man’s Trail, and Helios’ Fury are other top games from Relax Gaming, and no doubt all of them played a role in Kindred deciding to purchase the brand.
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