Kindred Group revenue dips 7% in third-quarter

Finance News

Kindred Group has reported total third quarter revenue of GBP 277.8 (298.4) million. Gross winnings revenue decreased by 9 per cent to GBP 271.9 (298.4) million. Excluding the Netherlands, gross winnings revenue increased by 8 per cent.

Underlying EBITDA decreased by 52 per cent to GBP 40.3 (84.8) million.Profit before tax amounted to GBP 60.3 (71.8) million, impacted positively by the reassessment of the fair value of the Relax Gaming contingent consideration of GBP 39.6 million.

Profit after tax amounted to GBP 57.9 (60.6) million Earnings per share were GBP 0.26 (0.27).Number of active customers decreased by 16 per cent to 1,466,986 (1,738,504).

CEO Henrik Tjärnström comments the third quarter of 2022 “At the start of the third quarter, we were finally able to welcome Dutch residents to our site, following a nine-month period of not accepting bets from the Netherlands. Thanks to our strong brand awareness, unique product offerings, and an excellent team, we are off to a flying start. Like the Netherlands, most of our markets are displaying solid performances. This has significantly improved our underlying EBITDA margin and free cash flow when compared to the second quarter of 2022, which is a good indicator of our scalable business model.”

“Following a slow start to the quarter, due to a seasonally tame sports calendar in July, activity increased rapidly as football leagues resumed in early August. This is encouraging as we have the World Cup in Qatar taking place in November and December. Activity has been high across markets with Gross winnings revenue excluding the Netherlands increasing by 8 per cent compared to the same period last year. The sports betting margin came in at 9.9 per cent after free bets, higher than the same period last year and above the long-term average margin.”

“Since launching in the Netherlands on 4 July until the quarter end, active customers for the Dutch market have grown to 137 thousand. Based on this momentum, we estimate to achieve a 15 per cent market share in the Netherlands in the fourth quarter.”