Kindred revenue climbs 36 percent in Q3-2017

The Kindred publicly listed online gambling group has posted its Q3-2017 and nine-month performance figures, claiming all-time high results in revenue and profits, and highlighting:

Q3-2017

* Group revenues up 36 percent y-o-y at GBP 194 million;
* EBITDA of GBP 46 million (Q3-2016: GBP 33 million), with recent acquisition 32Red contributing GBP 3.7 million of that;
* 32Red contributed GBP 18.6 million of GGR;
* 1.2 million active customers across group brands, over 120,000 of these generated by 32Red;
* GGR from the mobile channel soared 51 percent y-o-y, contributing 71 percent of group GGR;
* Operating profits of GBP 29.9 million (Q3 2016: GBP 21 million);
* Profit before tax at GBP35 million (GBP 24.8 million);
* Profit after tax at GBP 29.9 million (GBP 21 million);
* Net Cash of GBP 83.7 million (GBP 20 million);
* Bank debt of GBP 247.8 million (GBP 60.2 million).

For the nine months January to September 2017:

* Group revenues of GBP 513.4 million (GBP 391.3 million);
* EBITDA at GBP 106.5 million (GBP 81.8 million);
* Profit before tax: GBP 76.1 million (GBP 62.7 million);
* Profit after tax: GBP 66.6 million (GBP 54.5 million).

Group CEO Henrik Tjärnström attributed the outstanding results to strong growth across Kindred’s major markets and solid cost controls.

“Despite the absence of major football events this quarter, the organic gross winnings revenue growth in constant currency was 17 percent compared to the same period last year, which demonstrates that we continue to gain market share,” he said, noting that the acquisition of 32Red brought new expertise to Kindred and additional locally regulated revenue and opportunities for future revenue and cost synergies.

41 percent of the group’s GGR in the third quarter came from locally regulated markets, Tjärnström revealed.

Turning to mobile operations, the Kindred chief said that GGR from mobile soared 51 percent year-on-year, and amounted to 71 percent of total gross winnings revenue.

Tjärnström remains optimistic regarding future operations, noting that the group has increased its marketing coverage with the start of a new European football season, launching new cross-market sportsbook campaigns and securing new football partnerships.

“In the period up to 22 October 2017, with approximately 50 percent higher than normal sportsbook margins, average daily gross winnings revenue in GBP was 68 percent higher compared to the same period in 2016, he revealed. “Adjusting for the acquisition of 32Red and the impact of exchange rate changes, the growth was 57 percent.”

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