Kindred as an investment
A leading online gambling operator with a diversified footprint and a solid foundation for continued long-term profitable growth.
A large and growing underlying market
Thanks to the accelerating shift from offline to online, Gross winnings revenue within the non-cyclical global online gambling market is estimated to show a compound annual growth rate (CAGR) of 11.0 per cent between 2022 and 2027. The global online gambling market is estimated at GBP 77.7 billion in 2022, corresponding to 28.6 per cent of the total global gambling market (estimated at GBP 271.3 billion).
11.0% Compound annual growth rate 2022-2027*
*Source: H2GC February 2023
A leading online gambling operator with a diversified footprint
With annual revenues of GBP 1.1 billion and 33.9 million registered customers, 2022 Kindred is a leading online gambling operator. Our revenue is diversified from a brand, product and geographical perspective, with technology as a common denominator. This underpins stability and enables scalability.
GBP 1.1bn Annual revenues 2022 (2021: GBP 1.3bn)
Solid foundation for continued long-term profitable growth
Kindred has a strong record of revenue growth and operational efficiency. Through our tech-first approach and scalable platform, we provide our customers with a unique experience throughout long-lasting relationships. A key building block for the long-term value creation is the Kindred Sportsbook Platform. It will further increase our scalability, agility, security of supply and ability to differentiate. With our strong brands, attractive products and solid expertise we continue to grow our customer base and gain market share in our rapidly growing total addressable market across Europe, Australia and North America.
16.8% Compound annual growth rate in revenue 2012-2022
A determined focus on sustainability
Kindred’s purpose is to ʻtransform gambling by being a trusted source of entertainment that contributes positively to societyʼ. One of our priority areas is responsible gambling, and through our approach we aim to generate no revenue from high-risk customers. Our efforts provide long-term profit support, reduce volatility and uncertainty, and strengthen our ability to attract and retain the best talent.
3.0% Share of GWR from high-risk players in Q1 2023
A profitable business model with strong underlying cash flow generation
Kindred has a track record of strong profitability and cash flow generation. The solid balance sheet and cash flow generation allow for continued investments in both organic growth and selective acquisitions. Our most recent acquisition of the rapidly growing B2B supplier, Relax Gaming, will significantly contribute to the future profitability of the Group. The total pay-out ratio of dividends and share purchases should be ~75-100 per cent over time of free cash flow*.
~75-100% Pay-out ratio of free cash flow* over time
* Free cash flow is defined as net cash generated from operating activities, excluding movements in customer balances, less cash flows from investment activities (including acquisitions) and lease payments.