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Kindred Group finishes first half of 2023 with total revenue up 26%

25 July 2023

(PRESS RELEASE) -- Online gambling operator Kindred Group plc released its unaudited Q2 financial interim report for January – June 2023.

Second quarter 2023:

  • Total revenue was GBP 307.3 (238.7) million, an increase of 29 per cent.

  • Gross winnings revenue (B2C) increased by 28 per cent to GBP 298.3 (233.5) million. Excluding the Netherlands, it increased by 1 per cent.

  • Underlying EBITDA increased by 120 per cent to GBP 55.7 (25.3) million.

  • Profit before tax was GBP 33.1 (7.0) million.

  • Profit after tax was GBP 27.7 (5.8) million.

  • Earnings per share were GBP 0.13 (0.03).

  • 1,547,000 shares/SDRs were purchased, with a total value of SEK 189.9, or GBP 14.1, million.

  • Free cash flow amounted to GBP 3.0 (-5.1) million.

  • Number of active customers increased by 17 per cent to 1,561,444 (1,336,706). Excluding the Netherlands, active customers remained flat.

First half 2023:

  • Total revenue was GBP 613.7 (485.4) million, an increase of 26 per cent.

  • Gross winnings revenue (B2C) increased by 25 per cent to GBP 595.6 (475.9) million. Excluding the Netherlands, it remained in line.

  • Underlying EBITDA increased by 111 per cent to GBP 105.1 (49.8) million.

  • Profit before tax was GBP 63.5 (14.6) million.

  • Profit after tax was GBP 53.3 (12.2) million.

  • Earnings per share were GBP 0.25 (0.06).

  • 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 32.0 (-10.6) million.

“The strong start to the second quarter has remained throughout most of the period with the first two months being particularly strong,” said Nils Andén, Interim CEO. “June was slightly slower due to normal seasonality creating a lack of sports events, including Wimbledon only taking place during the third quarter this year. Continued focus on a strong customer offering has resulted in revenue increasing 29 per cent to GBP 307.3 million compared to the same period last year.”
“As revenue increases, we see the true scalability of our business model. Together with the actions taken at the start of the year to optimize our cost base proving to be effective, underlying EBITDA reached GBP 55.7 million, representing a margin of 18 per cent, or 20 per cent excluding North America. We reiterate our underlying EBITDA guidance for the full year 2023 of at least GBP 200 million.”

“Performance was positively impacted by an increase in sports betting along with favorable sports results. In addition, the increased popularity of the Betbuilder product, changing market mix, lower bonus costs, and continued optimization of trading, has improved the sports betting margin, which reached 11.3 per cent for the quarter.”

“The diversity of our market portfolio provides stability across the Group with particularly strong performance in several markets including the UK, Denmark, the Netherlands and Romania. While the challenges experienced in Belgium and Norway during the first quarter remain, signs of improvement are seen in Belgium. Excluding Belgium and Norway, we saw strong Gross winnings revenue growth for the Group of 41 per cent, and with the Netherlands also excluded Gross winnings revenue increased 7 per cent.”

“We are currently amid a great customer acquisition opportunity with the Women’s World Cup taking place in Australia and New Zealand. Following the huge success of the Women’s Euros last summer, we see how Women’s football is growing in importance and influence. With the major leagues kicking off in August and September, we can look forward to improved activity towards the latter part of the quarter.”

The average daily Gross winnings revenue for the Group, up to and including 23 July 2023, was GBP 2.93 million, 1 per cent lower (1 per cent higher in constant currency) than the daily average for the full third quarter of 2022.

Sports betting Gross winning revenue has been positively impacted by a stronger sports betting margin of 11.6 per cent after free bets for the above period, compared to 9.9 per cent for the full third quarter of 2022.

< Gaming News

Kindred Group finishes first half of 2023 with total revenue up 26% is republished from iGamingNews.com.