Kindred posts record annual results

14 February 2017

Unibet parent company Kindred Group has announced that its annual sales from gross winnings in 2016 increased by 54% to £544.1m (€638.7m/$678.5m), pushed by mobile gaming.

The firm's profit before tax stood at £92.8m for the full year of 2016 compared to £62.2m for the previous year and EBITDA for 2016 was £120.7m, up from £77m in 2015.

EBITDA for the fourth quarter of 2016 grew by 48% to £38.9m, despite betting duties increasing by 67% during the period.

The company said that this demonstrated its ability to face and absorb the impact of regulatory changes.

Henrik Tjärnström, chief executive of Kindred Group, said: “Of the Group’s gross winnings revenue 35% was from locally regulated markets. Gross winnings revenue from the mobile channel grew by 74% and accounted for 71% of total gross winnings revenue in the fourth quarter.

“The strong performance of the Group resulted in an increase in free cash flow of 57% in the fourth quarter.

“In the period up to 12 February 2017, average daily gross winnings revenue in GBP was 36% higher compared to the same period in 2016. Adjusting for the impact of exchange rate changes, the growth was 21%.”

During Kindred’s conference call, Tjärnström said that the Czech Republic was an area of concern for the company due to restrictions and low channelization in the region.

However, he emphasised that the Czech Republic was not a big market for the group, so reducing business in that area would have a limited effect.

Looking ahead, the company said it aimed to make at least one acquisition per year and was focused on growing its brand.

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