Unibet’s parent company the Kindred Group reported record revenue in the first quarter of 2017 but profit declined on higher marketing costs and betting duties.

In an interim report released on Wednesday, the Stockholm-listed Kindred reported record revenue of £153.2m in the three months ending March 31, one-quarter higher than the same period last year. But earnings were up only 6.3% to £30.2m and pre-tax profits fell nearly one-fifth to £18.2m.

The profit shortfall was down to significant cost increases, including a 56% rise in betting duties and a 36% rise in marketing spend, as well as some unfavorable foreign currency losses and accelerated amortization of assets.

On the plus side, active customer ranks rose 22% to a new record of 1.23m and all verticals posted positive year-on-year growth. Sports betting revenue was up 23% to £66.4m, casino & games gained 26% to £77.4m, poker rose 16% to £3.7m and ‘other’ products jumped 50% to £5.7m, likely due to the addition of the Stan James Online brand on Kindred’s bingo platform.