(AGENPARL) – mer 29 novembre 2023 7.30 AM CET / 29-Nov-2023 / Kindred Group (STO:KIND SDB)
Increase in active customers and actions identified to accelerate profitable
growth
Kindred Group plc – Interim report: January – September 2023 (unaudited),
including non-recurring indicative underlying EBITDA guidance for the full year
2024
Third quarter 2023
· Total revenue was GBP 283.9 (277.8) million, an increase of 2 per cent.
· Gross winnings revenue (B2C) increased by 1 per cent to GBP 274.7 (271.9)
million.
· Underlying EBITDA increased by 6 per cent to GBP 42.6 (40.3) million.
· Profit before tax was GBP 15.1 (60.3) million.
· Profit after tax was GBP 12.6 (57.9) million.
· Earnings per share were GBP 0.06 (0.26).
· Free cash flow amounted to GBP 24.5 (49.3) million.
· Number of active customers increased by 7 per cent to 1,563,762 (1,466,986).
January to September 2023
· Total revenue was GBP 897.6 (763.2) million, an increase of 18 per cent.
· Gross winnings revenue (B2C) increased by 16 per cent to GBP 870.3 (747.8)
million.
· Underlying EBITDA increased by 64 per cent to GBP 147.7 (90.1) million.
· Profit before tax was GBP 78.6 (74.9) million.
· Profit after tax was GBP 65.9 (70.1) million.
· Earnings per share were GBP 0.30 (0.32).
· 3,833,000 shares/SDRs were purchased, with a total value of SEK 443.7, or
GBP 34.2 million.
· Free cash flow amounted to GBP 56.5 (38.7) million.
Indicative Underlying EBITDA guidance for 2024
Based on current market growth expectations, and considering Kindred’s announced
interim strategic review update, Kindred anticipates the full year 2024
underlying EBITDA to reach GBP 250 million. Kindred also reiterates its full
year 2023 underlying EBITDA guidance of at least GBP 200 million, assuming a
normalised sports betting margin during the fourth quarter.
Interim CEO Nils Andén comments on the third quarter of 2023
“During the third quarter, we experienced continued growth in our casino segment
and strengthening positions in the key Netherlands and UK markets. However, this
growth was tempered by ongoing regulatory challenges in select core markets and
an impacted sportsbook performance.”
“I am pleased to see that we have regained our leading position in the
Netherlands following our re-entry in July 2022. We also see positive momentum
in the UK, with 7 per cent growth compared to the same period last year. In
spite of this, disappointing sports betting levels across core markets, combined
with a lower sports betting margin than our long-term average, negatively
impacted overall performance.”
“Underlying EBITDA reached GBP 42.6 million, representing a margin of 15 per
cent. This was impacted by weaker revenue than expected, however cost
optimisation efforts throughout 2023 have mitigated the revenue shortfall. We
reiterate our underlying EBITDA guidance for the full year 2023 of at least GBP
200 million, assuming a normalised sports betting margin during the fourth
quarter.”
“The strategic review initiated by the Board remains ongoing and we continue to
advance a number of options to deliver shareholder value. The Board currently
believes that shareholder value will be maximised through a third-party
transaction. Complementary to this process, we are announcing specific
operational initiatives, including (1) controlled cessation of our North
American operations (2) reduction in headcount and operational costs (3) focus
on profitable growth in core markets.”
“Taken together, expected annualised gross cost savings from exiting North
America and reducing headcount and other operational costs are estimated to be
approximately GBP 40 million.”
“I am confident that Kindred is well-positioned to continue to deliver above
market growth across our core markets, which have a combined estimated market
size of GBP 25.3 billion and a forecast compound annual growth rate of 6 per
cent over the coming five years.”
Trading update up to and including 26 November 2023
The average daily Gross winnings revenue for the Group, up to and including 26
November 2023, was GBP 3.08 million, 4 per cent lower (3 per cent lower in
constant currency) than the daily average for the full fourth quarter of 2022.
Sports betting Gross winning revenue has been negatively impacted by a weak
sports betting margin of 8.6 per cent after free bets for the above period,
which is below the long-term average margin of 9.7 per cent.
Kindred Group’s presentation of the interim report
Kindred Group’s Interim CEO Nils Andén and Interim CFO Patrick Kortman will host
a web presentation in English at 10.00 (CET) which is webcasted live on
https://www.kindredgroup.com/Q32023.
To access the telephone conference in connection with the presentation, please
After registration you will be provided phone numbers and a conference ID to
access the conference.
Please call in well in advance for registration. There will be an opportunity to
ask questions after the presentation.
This disclosure contains information that Kindred Group is obliged to make
public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the
Swedish Securities Markets Act (2007:528). The information was submitted for
For more information:
Patrick Kortman, Interim CFO, +46 723 877 438
Linda Lyth, Investor Relations Manager, +46 767 681 337
About Kindred Group
Kindred Group is one of the world’s leading online gambling operators with
business across Europe, North America and Australia, offering over 30 million
customers across 9 brands a great form of entertainment in a safe, fair and
sustainable environment. The company, which employs approximately 2,500 people,
is listed on Nasdaq Stockholm Large Cap and is a member of the European Gaming
and Betting Association (EGBA) and founding member of IBIA (International
Betting Integrity Association). Kindred Group is audited and certified by eCOGRA
for compliance with the 2014 EU Recommendation on Consumer Protection and
Responsible Gambling (2014/478/EU). Read more on http://www.kindredgroup.com.
Nasdaq Stockholm, KIND-SDB
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Kindred Group, Kindred Group plc, The Centre, Tigne Point, Sliema, TPO 0001 Malta
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Kindred Group, Kindred Group plc, The Centre, Tigne Point, Sliema, TPO 0001 Malta