Mixed Q3 Results for Evolution and Kindred

Evolution and the Kindred Group have reported contrasting Q3 figures. While Evolution have seen an increase in operating revenue, that hasn’t been the case for the Kindred Group.

A “high demand” for live casino content has produced impressive Q3 results for Evolution. Their operating revenue for Q3 was €378.5m which is up 37% from the €276m recorded for the same period in 2021. EBITDA, was also higher with a €261m figure which is 35% up from the Q3 2021 figure.

Operating profit has risen from €172m to €236.4m, just over 37% higher than last year’s corresponding figure. It’s the live casino section of their business that has been producing impressive results. They accounted for €310.4m in Q3 and that’s 45% higher than the same period in 2021. Random number generator (RNG) games produced €68.1m in revenue but that’s only a 11% increase.

Martin Carlesund is the Evolution CEO and is understandably happy with the latest results. He said: “We continue to see very strong global demand for our new as well as existing products and we are increasing market shares and our distance to competitors.”

He wasn’t so happy with the RNG figures and admitted that the company “have delivered too few slot games during the past period.”

Revenue for the first nine months of the year has been €1.05bn, that’s 37% higher than for January to September last year.

It’s not such good news for the Kindred Group. Their Q3 financial results saw a 7% top-line fall when compared to last year. Total revenue was £278m, just over £20m less than in the corresponding period in 2021.

One reason for this was a 9% fall in gross winnings revenue. If the Netherlands side of their business is excluded, there was an 8% increase. This year has seen the Kindred Group withdraw from the Netherlands market. They made that decision after the country introduced a new stricter regulatory framework.

The start of Q3 saw them again welcoming Dutch customers after Unibet were granted a licence. This followed a period of nine months without this being the case. Their CEO is Henrik Tjärnström and he’s pleased with the return to the Netherlands. “Thanks to our strong brand awareness, unique product offerings and an excellent team, we are off to a flying start,” he said.

Another reason for the overall fall in revenue was what they called “a seasonally tame sports calendar in July.” It would have been a different story if the World Cup has been held in the summer. With the tournament now being held in November and December, Q4 figures should be boosted.

The first nine months of this year has seen them generate £763.2m in revenue, 25% lower than in the same period last year.