Kindred Group PLC has released its latest quarterly report revealing group revenues of £283.9 million (€327.8 million/$359.7 million) for the third quarter ending on September 30th 2023.
The latest figures represent an increase of 2.19% compared to the same period in 2022 and now means hat total revenue for the year up to September 30th now stands at £897.6 million (€1.03 billion/$1.13 billion).
Key Highlights Q3 2023
- Total revenue – £283.9 million (€327.8million/$359.7 million), up by 2.19%
- Gross winnings revenue (B2C) – £274.7 million (€317.2 million/$348.1 million), up by 1%
- Underlying EBITDA – £42.6 million (€49.2 million/$54 million), up by 6%
- Profit before tax – £15.1 million (€17.4 million/$19.1 million)
- Profit after tax – £12.6 million (€14.5 million/$15.9 million)
- Earnings per share – £0.06 (€0.07/$0.76 )
- Free cash flow – £24.5 million (€28.2 million/$30.9 million)
- Number of active customers – 1,563,762, up by 7%
Year-to-date Q1-Q3
- Total revenue – £897.6 million (€1.03 billion/$1.13 billion), up by 18%
- Gross winnings revenue (B2C) – £870.3 million (€1 billion/$1.1 billion), up by 16%
- Underlying EBITDA – £147.7 million (€170.6 million/$187.3 million), up by 64%
- Profit before tax – £78.6 million (€90.8 million/$99.6 million)
- Profit after tax – £65.9 million (€76.1 million/$83.5 million)
- Earnings per share – £0.30 (€0.32/$0.35).
- 3,833,000 shares/SDRs purchased – total value of SEK 443.7, or £34.2 million (€39.5 million/$43.3 million).
- Free cash flow – £56.5 million (€65.2 million/$71.6 million)
Speaking of the results, interim CEO Nils Andén said:
“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.”
He went to add:
“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.”
Kindred Announces North America Exit
The group has also announced that it has made the decision to cease all operations in the North American market. A full exit of its Unibet sportsbook and online casino from North American markets is expected to be completed by the end of Q2 2024. This, alongside other sot reduction measures will result in the loss of over 300 employees during 2024. The exit and cost reduction measures are expected to result in overall group cost savings of an estimated £40 million (€46.2 million/$50.7 million) per year.
Nils Andén, noted:
“The cost reduction actions announced today are both necessary and decisive. While it is never a desire to inform valued colleagues of redundancies, this puts us in a stronger position to secure long-term growth for Kindred across our locally regulated core markets. We can now focus our resources and tech capacity towards strategic initiatives and selected markets where we see clear potential to grow our market share.”
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.
