Kindred Group has provided an unaudited trading update for the fourth quarter 2019. The results do not paint a pretty picture, with gross winning revenues across most of the company's markets being impacted by weak sports betting margins. The margin after free bets was 8.1 per cent for the quarter, compared to 9.4 per cent in the fourth quarter of 2018. The gross turnover for the sportsbook increased by 3 per cent compared with the fourth quarter of 2018. For the fourth quarter of 2019, the negative impact on the underlying EBITDA of US expansion was about GBP 6 million. The company said that gross winnings revenue and EBITDA continued to be negatively impacted by regulatory changes in Sweden and the Netherlands. Kindred estimates gross winning revenue for the fourth quarter of 2019 of about GBP 235 million (Q4-2018: GBP 250.1 million) unaudited. Underlying unaudited EBITDA for the fourth quarter of 2019 is estimated to be in the range GBP 27-32 million (Q4-2018: GBP 58.8 million). Shares in Kindred Group were
smashed lower on the back of the announcement dealing a significant blow to those that had stayed loyal to the company in the wake of previous bad news in 2019.
In the table below we perform a comparative analysis of the share prices of both Betsson and Kindred group, at the date of the opening
of the newly regulated Swedish betting market and in the wake of the announcement of their respective reports for the fourth quarter 2019.
Did somebody say merger?