- Kindred projects a rise in revenue for the second quarter of this year compared to last year even with COVID-19 cancellations for sporting events.
- Revenue came from esports and virtual sports along with major cuts to marketing and payroll during this quarter
- The official interim report will be out on July 24th.
NEW JERSEY – Despite the hiatus of sporting events due to the coronavirus, the Kindred Group expects gross revenue growth in the second quarter of this year.
The global online betting operator is projected to make $297.4 million this quarter compared to the $286.3 million in 2019 during the same months.
The lack of live sports was compensated during this time by Kindred’s options of other gambling products including esports betting and virtual sports such as FIFA and F1 events.
The announcements and the beginning of the return of sports action coming towards the end of this quarter sparked legal sports betting and allowed for “solid growth” in revenue.
Kindred also cut costs on content, marketing, and even payroll which is one of the main reasons earnings are projected to rise to between $61-67 million this year from the $38.6 million in 2019.
In a press release, the company explained that these cost cuts cannot continue as sporting events restart.
“While these actions have protected profitability in the short term, now when sports are returning to more normal activity levels, we expect the marketing cost model of the business to normalise as well. It is natural that reducing marketing and related costs produce a short-term profit benefit, but if sustained over a long period then these actions could damage the long-term competitive position of the business.”
The official interim report for the second quarter will be released on July 24 along with a results presentation and Q&A session held virtually.
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