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Kindred reveals widespread financial growth in Q1

| By iGB Editorial Team
Kindred Group has reported year-on-year growth across a host of key financials for the three months to March 31

Kindred Group has reported year-on-year growth across a host of key financials for the three months to March 31.

Gross winnings revenue amounted to £207.8m (€237.6m/$289.8m), up 36% on £153.2m in the corresponding period last year, with 32Red contributing £17.9m to this total.

Underlying earning before interest, tax, depreciation and amortisation (EBITDA) jumped from £30.3m in the first quarter of 2017 to £47.5m.

Elsewhere, profit before tax was up from £18.2m to £33.6m with profit after tax also climbing from £16.3m to £29.9m.

Kindred also saw the number of active customers across its business jump from 1,232,915 to 1,383,201, while underlying earnings per share increased from £0.085 to £0.140.

Henrik Tjärnström, chief executive of Kindred Group, said: “After an exceptional sportsbook margin in the fourth quarter last year, the margin has normalised in the first quarter of 2018 at 8.2% after free bets.

“Gross winnings revenue grew by 36% as reported and by 23% organically and in constant currencies, compared to the same period last year.”

“In Europe, the development of local licensing systems has continued and in Sweden the parliament will vote for a new modern licensing system on June 7, 2018.

“Outside Europe, during the year we are investigating if and how we can launch any of our brands in the US.

“In the period up to April 22, average daily gross winnings revenue in GBP was 52% higher compared to the same period in 2017.

“Adjusting for the acquisition of 32Red and the impact of exchange rate changes, the growth was 40%.”

Meanwhile, Kindred has developed and launched a new proprietary racing platform for customers in the UK and Ireland.

The company said the service forms part of its increased focus on racing and offering punters a 24-hour service across all major racing territories.

Kindred added that the platform will operate alongside its existing sportsbook products in the UK and Ireland.

Ben Colley, group head of global racing at Kindred, said: “Complementary to the excellent Kambi sportsbook, we expect this new platform for all things racing to quickly become a best of breed example, fully supported by experienced and knowledgeable trading and risk teams in both Gibraltar and Sydney.

“Next steps are to continue to develop and augment the platform to reach a point of excellence in our key racing territories of the UK, Ireland and Australia, then to localise and launch the experience for our individual European markets.”

Related article: Kindred reveals full-year growth after record Q4

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