Kindred as an investment

Kindred is a leading and global online gambling operator in a large and growing market with a purpose to transform gambling by being a trusted source of entertainment that contributes positively to society.

We are committed to continuing our growth journey in Australia, Europe and the US, the latter being an opportunity which will be prioritised in the coming years. Over time, an increasing share of Kindred’s revenue and profit will come from locally regulated markets. Our size, solid track record of growth and structured approach to sustainability have provided us with economies of scale and the ability to deliver sustainable profitable growth and strong cash flows.

A large and growing underlying market

Kindred operates in the global online gambling market which includes live and pre-game sports betting, casino & games, poker and bingo. Gross winnings revenue for this market was estimated to be over GBP 53 billion in 2020, with an expected compounded annual growth rate (CAGR) of 9 per cent between 2020 and 2025.

One of the world’s leading online gambling operators with a diversified business model

Kindred is the world’s fourth largest online gambling operator in terms of Gross winnings revenue and has nearly 30 million registered customers across many countries. Our revenue is diversified, both from a product and a geographical perspective, which provides a stable base and multiple growth opportunities.

A solid foundation for continued long-term profitable growth

Kindred has a track record of strong revenue growth with a CAGR of 23 per cent between 2010 and 2020. The accelerated shift to online gambling, regulatory developments and M&A activities create opportunities for Kindred to grow and continue to gain market share. The transformation to locally regulated markets continues, and we are confident that these markets will allow for solid and sound long-term growth.

Well positioned to grow the US to one of our largest markets

The US market almost tripled between 2019 and 2020 and has been estimated to be almost USD 11 billion by 2025. As of February 2021, Kindred has conditional access to up to 12 states, covering one third of the US population. Our ambition is to be live in six states by the end of 2021 and to grow the USA into one of Kindred’s largest markets in the next couple of years.

Determined focus on sustainability

A sustainable business is a core element in Kindred’s corporate purpose and embedded in our business model. It contributes to long-term profits, reduces volatility and uncertainty, and strengthens our ability to attract and retain the best talent. We have a sector-leading approach to responsible gambling with the ambition of having zero per cent of our revenues from harmful gambling by the end of 2023.

A profitable business model with strong underlying cash flow generation

Kindred has a track record of delivering profitability and strong cash flow. The strong balance sheet and cash flow generation allow for continued investments in organic growth in Australia, Europe and the US, and provide the financial strength required to pursue selective acquisitions.

Sources: H2GC 1 Jan 2020, Eilers&Krejcik, VIXIO Gambling Compliance


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