Kindred Group Reports Revenue Growth and Remains on Track for Full-Year Guidance
Kindred Group has announced a 2.2% rise in revenue to £283.9m (€245.7m/€283.9m) during the third quarter, stating that the company remains on track to perform in line with its full-year underlying EBITDA guidance.
The group experienced continued growth in its casino segment and strengthened its positions in the Netherlands and the UK. However, the growth was tempered by ongoing regulatory challenges in select core markets and a lighter sports calendar impacting sportsbook performance during the third quarter.
Despite these challenges, Unibet regained its position as the leading operator in the Netherlands, with an increase of 7.0% in active customers across the business. Interim CEO Nils Andén noted that while sports betting struggled, the success in the casino and games segment will drive long-term growth.
Breaking down the performance, B2C revenue increased year-on-year, with B2B and B2C revenue both seeing growth. Gross winnings revenue from B2C climbed 10% to £274.7m, supported by growth in the Dutch market and strong growth in the casino segment, while sports betting revenue was down 13.0%.
Kindred reported higher costs of sales and administrative expenses, which led to a 75.6% drop in pre-tax profit in the third quarter. However, underlying EBITDA was up 5.7% at £42.6m, and revenue for the nine months to 30 September was 17.6% higher than in the previous year.
Looking ahead, Kindred reiterated its full-year underlying EBITDA guidance and expects it to reach at least £200.0m, assuming a normalised sports betting margin during the fourth quarter.
The company also announced plans to exit North America by the end of Q2 2024 and cut over 300 jobs. Initial expectations for full-year underlying EBITDA in 2024 are set at £250.0m, and the strategic review launched earlier this year could potentially lead to the sale of part or all of the business.
Andén expressed confidence in the company’s return to above-market growth across its core market portfolio during 2024, following the actions announced.