The coronavirus pandemic have hit businesses across the world hard, with many companies being forced to furlough employees. With sporting events being cancelled, sports betting companies like ATS have been forced to adapt and adjust to the global environment.
One company, the Kindred Group, has found this cloud’s silver lining, as they’re expecting an increase in year-on-year revenue for the first quarter of 2020 (Q1 2020), in spite of the disruptions brought about by the Coronavirus outbreak.
The operator announced their forecast, which expects their gross revenue for the first three months of 2020, up to the 31st of March, to be within £247-252mn (US$301.6-307.8mn), which would be an increase from 2019’s Q1 figure of £224.4mn.
The company attributes this to a good start in 2020, with good betting margins for sports, up until the major sports got hit with suspension in March due to COVID-19, with their margin before free bets sitting at 12% during that time period, going up by 3% from 2019’s 9%.
The Kindred Group had to deal with the same sports cancellations that have affected all companies, but they’ve gained back some ground in other areas. Losses from the lower sportsbook turnover due to cancellations have been compensated for in other verticals.
The impact of cancelled sports events, however, led to a drop in numbers, as measured by the daily average gross winnings revenue, which sat at £2.2m, 10% lower than 2019’s.
Kindred CEO Henrik Tjärnström commented on the matter, saying that he believes that the impact of the COVID-19 outbreak on their operations to be temporary, expecting sports activity to come back during or after summer. They will, however, reduce marketing expenditures and operating costs, as well as delay certain investments, in order to minimize the damage.
Tjärnström stated that he remains positive about Kindred’s future, as the company has a wide geographical reach, a good range of products, as well as a tried and tested business model that’s survived other economic downturns.
He notes that there’s also a social and behavioral shift, which is speeding up the migration from offline to online, which he states is a huge boon for digital operators like ATS and themselves.