Kindred Group Quarter 1 Earnings Report Released

The global online gambling operator Kindred Group, known for brands like Unibet, has published its earnings report for the first quarter. While the company previously stated it would be exiting the North American market, users can still transition to one of our other top sports betting sites.

The company’s financial results are varied, with revenue figures showing little change compared to the previous year. However, there were slight increases in total revenues, gross winnings revenue, and gross profits. Despite this mixed performance, the figures are generally viewed positively as the company prepares to exit the North American market.

Nils Andén, CEO of Kindred, stated that the company has had a successful beginning to 2024, with strong performance in business operations and progress in operational initiatives. Plans to reduce headcount are on track, and the exit from North America is expected to be completed by the end of the second quarter. The growth plan launched in the fourth quarter of last year, which targets Europe and Australia, is advancing with strategic projects in locally regulated markets.

Getting into the numbers

As previously stated, the majority of the figures in the Kindred Group’s first quarter report closely mirrored those of Q1 from the previous year. The revenue breakdown in the report includes last year’s figures noted in brackets for comparison.

• Total revenue was GBP 307.7 (306.4) million, in line with the first quarter of 2023.
• Gross winnings revenue (Business-2-Customer) was GBP 297.6 (297.3) million.
• Underlying EBITDA increased by 20 per cent to GBP 59.3 (49.4) million.
• Profit before tax was GBP 39.8 (30.4) million.
• Profit after tax was GBP 31.4 (25.6) million.
• Earnings per share were GBP 0.15 (0.12).
• Free cash flow amounted to GBP 23.7 (29.0) million.
• Number of active customers increased by 3 per cent to 1,667,564 (1,623,568)

The company saw strong year-over-year growth in both EBITDA and adjusted EBITDA, with profits before and after tax showing the most significant gains. Pre-tax profits increased by 30.9% compared to the previous year, while post-tax profits were up by 22.7%.

Locally regulated markets carry their weight

Kindred Group capitalized on robust growth, particularly in gross winnings from locally regulated markets, while non-regulated markets negatively impacted the company’s profits.

Kindred Group CEO Nils Andén stated that the share of gross winnings revenue from locally regulated markets has reached a new record high of 84%, showcasing the company’s dedication to sustainable revenue and making a positive impact on society.

Conversely, the company’s overall Q1 performance was negatively impacted by a 16 percent decline in gross winnings revenue in non-locally regulated markets.

The markets in Western Europe experienced a 10% year-over-year growth, contributing to 64% of the company’s total revenues. The Dutch and UK markets performed well, while France and Belgium were identified as the company’s weaker markets in Europe, as per the Kindred report.

Casinos perform well too

In the first quarter, Kindred Group saw strong performance in its casino and gaming markets. Casino accounted for 56% of gross winnings, surpassing sports wagering which accounted for 39% of profits. Poker, on the other hand, only contributed 3% to Kindred’s revenues.

The casino sector experienced a 3% increase in gross winnings compared to the previous year, with active users up by 6% from Q1 of the previous year. Real money online casinos have seen growth in various jurisdictions.

In Q1, gross revenues from sports betting decreased by 3% compared to the previous year, while poker revenues saw a 6% drop during the same period.

Looking forward

Although Q1 earnings were disappointing and showed little growth, there is hope and positivity for Q2. Nils Andén expressed optimism, stating, “After a promising start to the year, we are now looking forward to an exciting summer of sports with events such as the UEFA Euros, the Copa America, and the Paris Olympics.”

Q2 has shown considerable strength with a 6% increase in average daily gross winnings revenue compared to last year. Sports betting revenue has also seen a significant 11.3% year-over-year increase in Q2. Despite Kindred’s decision to exit the North American market during this period, the second quarter is still projected to perform even better.