First quarter highlights
- New all-time high in Gross winnings revenue of GBP 153.2 (122.4) million for the first quarter of 2017, an increase of 25 per cent.
- Underlying EBITDA for the first quarter of 2017 was GBP 30.3 (28.5) million.
- Profit before tax for the first quarter of 2017 amounted to GBP 18.2 (22.5) million. This includes M&A costs of GBP 0.6 million related to the proposed acquisition of 32Red and non-cash items of GBP 3.9 million as shown in the income statement.
- Profit after tax for the first quarter of 2017 amounted to GBP 16.3 (20.0) million.
- Earnings per share for the first quarter of 2017 were GBP 0.072 (0.087).
- Number of active customers during the quarter was 1,232,915 (1,007,365).
“Despite strong comparatives, new all-time high in active customers and Gross winnings revenue.”
“Despite a low sports betting margin over the first quarter of 2017 (6.0 per cent after free bets), Gross winnings revenue grew by 25 per cent to GBP 153.2 million (+ 12 per cent in constant currencies). Active customers reached an all-time high this quarter at over 1.2 million customers, proving our ability to acquire and retain customers. Sports betting turnover increased by 32 per cent and reached an all-time high at GBP 1.1 billion, which equated to a growth of around 19 per cent in constant currencies.”
“In line with the fundamentals of our growth strategy, we have continued to invest heavily in marketing for both new customer acquisition and reactivation of existing customers. While this may reduce profits in the short term, we are confident that, as we have previously proven, this will drive sustained growth in Gross winnings revenue and profits. For the quarter, marketing was 29 per cent of Gross winnings revenue; however, for the full year we still expect it to average a few percentage points below 30 per cent.”
“Our cash offer for the UK operator 32Red will, from the second quarter of 2017, instantaneously increase both revenue and profit from the very significant UK market. This acquisition will supplement our current strong organic growth and will significantly increase the Group's overall growth in the future, especially during the first twelve months. The acquisition will also bring new expertise into the Group and offer both immediate and future opportunities for both revenue and cost synergies.”
“In the first quarter of 2017, 34 per cent of the Group’s Gross winnings revenue came from locally regulated markets. Gross winnings revenue from the mobile channel grew by 53 per cent and accounted for 73 per cent of total Gross winnings revenue in the first quarter.”
“In the period up to 23 April 2017, average daily Gross winnings revenue in GBP was 24 per cent higher compared to the same period in 2016. Adjusting for the impact of exchange rate changes, the growth was 17 per cent,” says Henrik Tjärnström, CEO of Kindred Group.
Today, Wednesday 26 April 2017, Kindred Group’s CEO Henrik Tjärnström will host a presentation in English at FinancialHearings, Tändstickspalatset, Västra Trädgårdsgatan 15, in Stockholm at 9.00 CEST.
Please go financialhearings.com to sign in. The presentation is also webcast live on www.kindredgroup.com.
For those who would like to participate in the telephone conference in connection with the presentation, the telephone number is UK: +44 20 3008 9813 or in the USA: +1 855 831 5947
The Kindred Group companies hold local gambling licences in UK, France, Belgium, Denmark, Germany (Schleswig-Holstein), Italy, Australia, Ireland, Romania and Estonia. The Kindred Group also holds international gambling licences in Malta and Gibraltar. The Kindred Group pays betting duties in all markets in accordance with applicable local laws.
For further information please contact:
Inga Lundberg, Investor Relations +44 788 799 6116
Henrik Tjärnström, CEO +46 723 878 059
About Kindred Group
Kindred Group is listed on Nasdaq in Stockholm and is one of Europe’s largest online gambling operators. Kindred Group is home to 10 brands which serve over 15.8 million customers worldwide. Kindred Group is a member of the European Gaming and Betting Association, Remote Gambling Association in the UK and is audited and certified by eCOGRA in compliance with the pan-European CEN standard on consumer protection and responsible gaming.