Third quarter and the period January to September highlights
- Gross winnings revenue amounted to GBP 230.7 (193.6) million for the third quarter of 2018, an increase of 19 per cent, and GBP 657.5 (513.4) million for the period January to September 2018.
- Underlying EBITDA for the third quarter of 2018 was GBP 55.7 (46.8) million, and GBP 144.9 (110.5) million for the period January to September 2018.
- Strong cash flows of GBP 57.1 (47.7) million generated from operating activities before movements in working capital in the third quarter 2018 and GBP 148.6 (109.1) million for the period January to September 2018.
- Profit before tax for the third quarter of 2018 amounted to GBP 42.0 (35.0) million, and GBP 104.5 (76.1) million for the period January to September 2018.
- Profit after tax for the third quarter of 2018 amounted to GBP 36.9 (29.9) million and GBP 92.3 (66.6) million for the period January to September 2018.
- Earnings per share for the third quarter of 2018 were GBP 0.163 (0.131) and GBP 0.406 (0.293) for the period January to September 2018.
- Number of active customers during the quarter was 1,530,327 (1,219,761).
“EBITDA up 24 per cent in constant currencies and active customers up 25 per cent”
“During the quarter, we reaped the benefits of the marketing investments made in the lead up to the World Cup, with active customers up 25 per cent compared to the same period last year. The sports betting margin was 8.5 per cent after free bets.”
“Gross winnings revenue increased by 22 per cent in constant currencies which means that we are continuing to gain market share. Gross winnings revenue from mobile grew by 24 per cent compared with the third quarter last year and amounted to 74 per cent of our total Gross winnings revenue. Of the Group’s Gross winnings revenue 42 per cent came from locally regulated markets.”
“Despite a 33 per cent increase in betting duties and marketing investments up 24 per cent this quarter, our underlying EBITDA grew by 24 per cent in constant currencies compared to the same period last year (+19 per cent in GBP), showing the scalability of our business model and our continued good cost control.”
“Last year the Group decided to enter the US market and after the US Supreme Court ruled against PASPA in May this year, we applied for an online license in the state of New Jersey. The USA is the world’s largest gambling market and we see it as a great opportunity for Kindred.”
“For the first 24 days of October 2018, the sports betting margin after Free bets was approximately 25 per cent higher than the long-term average of 7 per cent. For the fourth quarter of 2017 it was 50 per cent above the long-term average. Due to this lower margin, the daily average Gross winnings revenue in GBP in the period up to 24 October 2018 was 5 per cent lower (3 per cent in constant currency) than for the full fourth quarter last year,” says Henrik Tjärnström, CEO of Kindred Group.
The information in this report is such that Kindred Group plc is required to disclose under the EU Directive of Market Abuse Regulation.
Today, Friday 26 October 2018, 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 to 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 numbers are UK: +44 20 3008 9818 or USA: +1 855 753 2237.
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 Stockholm Large Cap, and is one of Europe’s largest online gambling operators. Kindred Group is home to 11 brands, which serve over 23,9 million customers worldwide. Kindred Group is a founding member of the European Gaming and Betting Association (EGBA) and founding member of ESSA (sports betting integrity). Kindred Group is audited and certified by eCOGRA for compliance with the 2014 EU Recommendation on Consumer Protection and Responsible Gambling (2014/478/EU). Read more on www.kindredgroup.com.