Fourth quarter 2020
- Gross winnings revenue amounted to GBP 364.7 (236.2) million, an increase of 54 per cent.
- Underlying EBITDA was GBP 118.0 (30.7) million.
- Profit before tax amounted to GBP 98.7 (13.3) million.
- Profit after tax amounted to GBP 84.9 (10.9) million.
- Earnings per share were GBP 0.374 (0.048).
- Free cash flow amounted to GBP 111.2 (18.3) million.
- Achieved a net cash position of GBP 104.7 (net debt position of GBP 155.0) million.
Full year 2020
- Number of active customers was 1,781,617 (1,603,903).
- Gross winnings revenue amounted to GBP 1,130.2 (912.8) million, an increase of 24 per cent.
- Underlying EBITDA was GBP 286.8 (130.0) million.
- Profit before tax amounted to GBP 193.1 (67.1) million.
- Profit after tax amounted to GBP 165.2 (56.6) million.
- Earnings per share were GBP 0.728 (0.250).
- Free cash flow amounted to GBP 267.5 (48.5) million.
- The Board of Directors has agreed on a new dividend and share buyback policy and subsequently propose a dividend of GBP 0.330 (nil) per share/SDR, equal to a total dividend of approximately GBP 75 million.
“New record in active customers and solid performance across all products contributes to strong growth”
I am pleased that we can finally put 2020, a difficult year for most people, businesses and countries, behind us. It has certainly been a year we will all remember. At Kindred, we have successfully managed to navigate these uncertain times and have continued to attract customers who enjoy a safe and entertaining gambling experience, resulting in several new all-time highs this quarter including active customers and Gross winnings revenue, which increased 54 per cent from the fourth quarter of 2019 to GBP 364.7 million.
Our scalable business model continues to drive profitability
The fourth quarter delivered strong results thanks to our scalable business model, continued focus on costs and impressive growth in active customers to 1.78 million. The busy sports calendar and a slightly higher than normal sports betting margin of 10 per cent, together with encouraging growth of 52 per cent in casino & games compared to the fourth quarter of 2019, have all contributed to our notable growth in Gross winnings revenue. Continued focus on operational costs and improved return on marketing investments also resulted in impressive growth in underlying EBITDA of 284 per cent to GBP 118.0 million. At the same time, it is encouraging to see that Kindred’s share of voice across markets has increased throughout 2020.
Continued growth in core markets and expanding our US footprint
Our European and Australian businesses have continued to grow during the fourth quarter which, as we have proven many times before, shows that we remain resilient to temporary market turbulence. The sector also firmly established itself in the US market during 2020, and our Unibet brand continues to deliver here according to plan with a Gross winnings revenue contribution of GBP 23.8 million for the full year. Being one of the largest operators in the world, I look forward to our continued journey in the US as Unibet projects to launch in both Illinois and Iowa during 2021.
The transformation to locally regulated markets continues
Entering new markets, or preparing for local regulation in existing markets, involves patience and focus. It normally takes 18 to 36 months for a market to reach pre-regulation profitability, following initial margin pressure due to betting duties, compliance costs and marketing investments. I do not expect it to be any different for the Dutch market and, as it prepares for local regulation in 2021, we will use our previous experience to our advantage. After a slightly challenging start in Sweden, we are now two years in and, as envisaged, we are getting close to pre re-regulation levels of financial contribution. It is also encouraging to see that over the course of 2020, locally regulated markets have grown at a faster pace than .com markets.
A good start to 2021 and new opportunities
With a scalable business model and our house in order we are ready for what lies ahead. The year has started well, with the average daily Gross winnings revenue for the first 38 days of 2021 being 41 per cent higher (36 per cent higher in constant currency) than the same period last year. Finally, I would like to thank the Kindred team for their outstanding work during a very difficult year and I know that all of us look forward to giving our customers a safe and exciting experience during 2021, building up to the Euros and the Olympics in Tokyo.
Henrik Tjärnström, CEO of Kindred Group
This disclosure contains information that Kindred Group is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 10-02-2021 07:30 CET.
For further information please contact:
Inga Lundberg, Investor Relations +44 788 799 6116
About Kindred Group
Kindred Group is one of the world’s leading online gambling operators with business across Europe, US and Australia, offering over 27 million customers across 9 brands a great form of entertainment in a safe, fair and sustainable environment. The company, which employs about 1,700 people, is listed on Nasdaq Stockholm Large Cap and is a member of the European Gaming and Betting Association (EGBA) and founding member of IBIA (International Betting Integrity Association). 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
Nasdaq Stockholm, KIND-SDB