Kindred’s first quarter revenue slumps by 31% as firm blames “temporary headwinds”

Finance News

Kindred Group’s first quarter revenue slumped by 31% as the firm blames “temporary headwinds” but continues with long-term optimism.

Total revenue (B2C and B2B) was GBP 246.7 (352.6) million. Gross winnings revenue (B2C) decreased by 31 per cent (29 per cent in constant currency) to GBP 242.4 (352.6) million. Excluding the Netherlands, Gross winnings revenue declined by 7 per cent (3 per cent in constant currency)

Underlying EBITDA decreased by 77 per cent to GBP 24.5 (106.0) million.Profit before tax amounted to GBP 7.6 (85.3) million.Profit after tax amounted to GBP 6.4 (72.6) million.

CEO Henrik Tjärnström comments on the first quarter 2022 “While the start of 2022 has seen societies returning to normal after two years of COVID-19 impacting our lives, we are today witnessing worrying geopolitical development in Europe, bringing both uncertainty and tragedy that will leave its mark for the foreseeable future. Whilst these developments have had a limited impact on Kindred’s performance for the first quarter of 2022, we continue to notice an impact from post-COVID-19 normalisation across markets, as well as the decision to cease activity in the Dutch market in Q3 2021.”

“Our diversified product and market mix provides us with a relative degree of stability across the Group. We have seen this on several occasions, not least during the pandemic when sports virtually disappeared for a period. Excluding the Netherlands, our diversified portfolio has seen solid casino performance across markets during the first quarter of 2022 with growth of 1 per cent from the same period in the prior year despite tough comparatives. This has balanced out the slightly more volatile sportsbook, which started out strong but had a weaker second half of the quarter.”

“The cessation of activity in the Dutch market continued to have a short-term impact on our Gross winnings revenue, which came in at GBP 242.4 million for the quarter, in line with the fourth quarter 2021 but significantly below the same period last year. While this temporary top-line pressure reduces our profitability in the short-term, we maintain a very positive long-term view on the return from investments in our tech platform and strategic projects, such as our US expansion and the recently announced Kindred Sportsbook Platform.”

“We embarked on our transformation journey more than ten years ago and it is very satisfying that we are nearing, in the coming months, one of the final major milestones. We have an exciting time ahead of us and I have great confidence in the direction we are taking through our long-term focus.”