Kindred Group plc

Total revenues were GBP327.6 million, up 7% year over year; underlying EBITDA was GBP73.6 million, up 32% year over year, with a 22% margin (23% excluding North America). Gross winnings revenue from locally regulated markets reached GBP267.1 million, an all-time high, and active customers rose 12%. Free cash flow came in at just north of GBP41 million and net cash at the end of Q2 was GBP63.7 million. Cost ratios improved, with cost of sales at 12.9% of revenue versus 14.1% last year, marketing at 18.5% versus 20.3%, salaries down GBP4 million year over year, and other OpEx down to 6.6% from 7.4%. For Q3 to date, average daily revenue was GBP3.28 million, up 10% reported and 11% constant currency; full-year underlying EBITDA guidance was reaffirmed at GBP250 million.

Nils Anden framed the quarter as continued execution on Kindred’s strategy: focus on locally regulated markets, disciplined cost control, and improving profitability. He highlighted record performance in locally regulated revenue, strong sportsbook momentum, and the company’s highest-ever tournament revenue from the Euros, calling the quarter a solid step toward annual guidance. His tone was upbeat and confident, but grounded in execution rather than expansion for its own sake.

Patrick Kortman emphasized broad-based revenue growth and better cost efficiency across the P&L. He cited cost of sales at 12.9% of revenue, marketing at 18.5%, salaries down GBP4 million, and other OpEx down 1 percentage point to 6.6%, which helped underlying EBITDA rise to GBP73.6 million. He also noted currency headwinds of slightly below 2% on GWR, a GBP5.7 million negative FX impact on revenue, and a solid Q3 start with average daily revenue of GBP3.28 million.

Analysts pressed on whether softer casino trends reflected strong sportsbook margins and whether sportsbook activity was being dampened by tournament timing. Management said the high sportsbook margin can reduce casino volumes for multiproduct players, but they were not overly concerned, and they also said the late-stage Euros had a meaningful impact on the trading update period. Questions on Netherlands deposit limits and marketing spend drew a cautious answer: it is too early to quantify the impact, but management expects a short-term effect and remains confident in its market leadership; on marketing, they said spend excluding North America actually increased by GBP2 million, while structural marketing-to-sales ratios should not revert to prior highs due to regulation and lower reinvestment levels.