Kindred off to a good 2017 start

The Kindred Group, a Swedish-listed online gambling corporate previously known as Unibet plc, has posted a strong start to 2017 with Q1-2017 results that that have clearly benefitted from a larger portfolio of betting and igaming brands.

The company highlighted:

* New record group revenues of GBP 153 million, a year-on-year rise of 25 percent;
* Sports betting stakes up at a record GBP 1.1 billion.
* Active player numbers up at record levels at over 1.2 million;
* Underlying period EBITDA of GBP 30.3 million (Q1-2016: GBP28.5 million);
* Operating profits down at GBP 18.2 million (Q1-2016: GBP 22.5 million) due to M&A costs associated with the GBP 175 million acquisition of online gaming group 32Red plc;
* NPAT down at GBP 16.3 million (Q1-2016: GBP 20 million).

CEO Henrik Tjärnström reported to shareholders:

“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 percent of gross winnings revenue; however, for the full year we still expect it to average a few percentage points below 30 percent.

“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.”

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