Kindred Group reports revenue ‘below expectations’
Kindred Group has delivered solid growth year-on-year with total Group revenue of approximately GBP 305 million (Q4 2021: GBP 244.9 million).
Total revenue increased by 24 per cent (23 per cent in constant currency) and by 3 per cent excluding the Netherlands (2 per cent in constant currency) compared to the same period last year. The quarter saw 1.83 million active customers for the Group supported by marketing investments in the run-up and during the World Cup, which is the second highest recorded number and an increase of 25 per cent compared to the fourth quarter last year.
Turnover during the World Cup 2022 was good it did not manage to offset the reduced number of major football league fixtures being played in the quarter compared to the same period in 2021 (approximately 200 fewer top league fixtures compared to Q4 last year).
Underlying EBITDA for the fourth quarter of 2022 is estimated at approximately GBP 39 million (Q4 2021: GBP 27.6 million). The Underlying EBITDA for the quarter was negatively impacted by the weaker revenue than expected, a historically low gross profit margin and considerable marketing investments (marketing costs excluding affiliates amounted to approximately GBP 67 million). The gross profit margin for the fourth quarter was approximately 53.9 per cent and negatively impacted by Houston Astros winning the World Series, which resulted in a GBP 3.9 million EBITDA loss, as well as an unfavourable market mix with a higher proportion of the revenue comingfrom lower margin markets. Excluding North America, the Underlying EBITDA reached approximately GBP 54 million.