Highlights of Kindred Group's Third Quarter Performance
Our performance continues to demonstrate strength in a diversified market footprint.
Third quarter 2024
- Total revenue reached GBP 294.5 million, marking a 4 percent increase.
- Gross winnings revenue from B2C grew by 3 percent to GBP 283.1 million.
- Underlying EBITDA surged by 49 percent to GBP 63.4 million.
- Profit before tax amounted to GBP 12.5 million, affected by strategic review costs related to the FDJ transaction.
- Profit after tax was GBP 9.6 million, which included a loss from discontinued operations of GBP 0.4 million.
- Earnings per share stood at GBP 0.04.
- Free cash flow recorded at GBP -4.2 million.
- We proudly increased our active customer base by 9 percent, now totaling 1,701,100.
Overview: January - September 2024
- Total revenue for this period was GBP 929.8 million, an increase of 4 percent.
- Gross winnings revenue from B2C grew by 3 percent to GBP 897.9 million.
- Underlying EBITDA was GBP 196.3 million, reflecting a 33 percent improvement.
- Profit before tax reached GBP 107.9 million, influenced by strategic review costs of GBP 34.4 million.
- Profit after tax was GBP 85.5 million, including a loss from discontinued operations of GBP 3.3 million.
- Earnings per share increased to GBP 0.40.
- Free cash flow amounted to GBP 61.1 million.
Insights from CEO Nils Andén on Recent Developments
Nils Andén shares, "The positive momentum gained throughout the first half of the year persisted into the third quarter of 2024, with our key markets showing robust performance. This is evidenced by total revenues for the quarter reaching GBP 294.5 million, a reflection of continued strength particularly in constant currency. Excluding North America, our total revenues increased by a notable 6 percent this period."
He further added, "I am thrilled that our underlying EBITDA reached GBP 63.4 million, demonstrating a substantial year-over-year increase of 49 percent, with a margin of 22 percent. This is a testament to our scalable business model and its effectiveness in our operations."
Andén also acknowledged the challenges posed by the completion of the acquisition by La Française des Jeux (FDJ) and its effects on their operations, stating that they would exit markets that do not promise clear paths to local regulation shortly. This, he noted, could affect their predefined EBITDA targets for the year.
Moreover, he elaborated on their focus, stating, "Our efforts on growing in locally licensed markets have started to bear fruit, with our Gross winnings revenue in these markets showing a year-on-year growth of 4 percent, motivated by key events such as the Euros and the home Olympics in France, alongside positive outcomes noticed in markets like the Netherlands, Romania, and Denmark. Through these initiatives, we are laying the foundation for our long-term sustainable revenue model."
Lastly, Andén expressed gratitude towards the investors and the Kindred team. He remarked, "After 20 years on Nasdaq Stockholm, this marks a pivotal change for us. Our collaboration has significantly contributed to a competitive, digital, and sustainable online gambling industry, and I look forward to what lies ahead for Kindred."
This disclosure conveys information that Kindred Group is required to publish under the EU Market Abuse Regulation.
For more details, please contact:
Patrick Kortman, Interim CFO.
Frequently Asked Questions
What were Kindred Group's total revenues for Q3 2024?
Kindred Group's total revenue for the third quarter of 2024 reached GBP 294.5 million, a 4 percent increase compared to the prior year.
How did underlying EBITDA perform in this quarter?
The company reported an underlying EBITDA of GBP 63.4 million for Q3, showing a remarkable growth of 49 percent year-on-year.
What were the earnings per share in Q3 2024?
Earnings per share for the third quarter of 2024 were GBP 0.04.
How many active customers does Kindred Group have?
As of the latest report, Kindred Group has 1,701,100 active customers, reflecting a 9 percent increase.
What strategic changes are impacting future performance?
Kindred has announced an exit from non-compliant markets, which will affect their performance targets due to upcoming regulatory changes.
