By Iqbal Johal
Kindred Group has estimated a rise in year-on-year revenue for Q1 2020, despite business being disrupted in the second half of March due to the coronavirus outbreak.
The operator forecasts gross revenue for the three months to 31 March to be in the range of £247-252m ($301.6-307.8m), which will be an increase on last year’s Q1 figure of £224.4m.
Kindred puts the revenue increase down to a strong sports betting margin up until all major sports were suspended in March, with margins before free bets being 12% for the period, up from 9% in 2019.
Despite the cancellation of sports events resulting in lower sportsbook turnover, this has been compensated by growth in other verticals.
Indications suggest that, from the period after sports was suspended (16-31 March), daily average gross revenue was £2.2m, 10% lower than the average for full-year 2019.
Despite the operator stating it’s in a strong financial position, the uncertainty surrounding the coronavirus outbreak has meant the board has recommended the previously announced 2019 dividend will not be paid.
Kindred also announced it will publish its full Q1 results on 24 April.
Kindred CEO 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.
"I remain very positive about Kindred’s future outlook. I also believe the social and behavioural changes that are already happening will accelerate the migration from offline to online, which will benefit digital operators like Kindred."