Double digit earnings growth driven by strong casino performance

Kindred Group plc – Interim report: January – September 2021 (unaudited), including non-recurring indicative guidance for Q4 2021

Third quarter 2021

• Gross winnings revenue increased by 6 per cent (11 per cent in constant currency) to GBP 298.4 (280.7) million
• Underlying EBITDA grew by 13 per cent (21 per cent in constant currency) to GBP 84.2 (74.6) million
• Profit before tax amounted to GBP 71.8 (60.7) million
• Profit after tax amounted to GBP 60.6 (52.5) million
• Earnings per share were GBP 0.27 (0.23)
• 2,250,000 shares/SDRs were purchased at a total price of SEK 342.6, or GBP 28.7 million
• Free cash flow amounted to GBP 51.2 (59.7) million
• Number of active customers was 1,738,504 (1,650,153)

First nine months 2021

• Gross winnings revenue increased by 33 per cent (34 per cent in constant currency) to GBP 1,014.7 (765.5) million
• Underlying EBITDA grew by 76 per cent (83 per cent in constant currency) to GBP 296.5 (168.8) million
• Profit before tax amounted to GBP 259.6 (94.4) million
• Profit after tax amounted to GBP 220.3 (80.3) million
• Earnings per share were GBP 0.97 (0.35)
• 3,567,000 shares/SDRs were purchased at a total price of SEK 532.6, or GBP 44.9 million
• Free cash flow amounted to GBP 223.4 (156.3) million

Indicative non-recurring guidance for Q4 2021

Due to the decision to cease services to Dutch residents, and the exceptionally weak sports betting margin during the first the first 24 days of October 2021, Kindred has decided to communicate non-recurring indicative guidance for the full fourth quarter of 2021. Depending on activity levels and the sports betting margin for the remainder of the quarter, Kindred estimates Gross winnings revenue for the fourth quarter of 2021 to be in the range of GBP 220 to 260 million.

CEO Henrik Tjärnström comments on the interim report for the third quarter 2021

“I’m pleased to present a strong Q3 performance with Gross winnings revenue of GBP 298.4 million, an increase of 6 per cent (11 per cent in constant currency) compared to the same period last year. Our continued focus on costs and scalability has also delivered strong underlying EBITDA of GBP 84.2 million for the quarter, an increase of 13 per cent (21 per cent in constant currency) compared to the third quarter last year.”

“After a relentless sporting calendar and subsequent low sports seasonality, sportsbook activity slowed as options for other sources of entertainment improved. However, it was pleasing to see continued strong casino activity generating an increase in casino Gross winnings revenue of 16 per cent to GBP 168.3 million versus the same period last year, which is testament to our strong multi-product offering.”

“As communicated at the very end of the quarter, we took the decision to cease services to Dutch residents. Subject to KSA licence application approval, we look forward to being awarded our licence in Q2 2022. The opening of the online gambling market in the Netherlands is a very positive step for all involved and we look forward to making a positive contribution to the Dutch society in achieving a sustainable gambling market.”

“On 1 October 2021, we concluded the acquisition of Relax Gaming as planned. This is a great development for Kindred as it further enables us to significantly differentiate both new and existing products, ultimately giving us more control of the offerings and providing our customers with a better experience.”

Trading update for the first 24 days of October 2021

The average daily Gross winnings revenue for the Group for the first 24 days of October 2021 was 61 per cent (59 per cent in constant currency) lower than the daily average for same period last year.

Gross winnings revenue has been negatively impacted by the closure of services to Dutch residents and an exceptionally weak sports betting margin. The margin after free bets was under 2 per cent during the period compared to 13 per cent for the same period last year.

The number of active customers for the first 24 days of October 2021 decreased by 13 per cent compared to the same period last year.

The daily average gross sports betting turnover decreased by 21 per cent (17 per cent in constant currency) compared to the same period last year. The daily average Gross winnings revenue from casino decreased by 24 per cent (21 per cent in constant currency) compared to the same period last year.

Kindred Group’s presentation of the interim report

Kindred Group’s CEO Henrik Tjärnström will host today, on Wednesday 27 October, a web presentation in English at 09.00 (CEST) which is web casted live on https://www.kindredgroup.com/q32021.

For those who would like to participate in the telephone conference in connection with the presentation, please call:

UK: +44 33 3300 9032

US: +1 646 7224 902

SE: +46 8 505 58 374

Please call in well in advance for registration. There will be an opportunity to ask questions after the presentation.

This disclosure contains information that Kindred Group is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 27-10-2021 07:30 CET.

For more information:
Patrick Kortman, Head of Corporate Development & Investor Relations, ir@kindredgroup.com, +46 723 877 438
Linda Lyth, Investor Relations Manager, +46 767 681 337

About Kindred Group
Kindred Group is one of the world’s leading online gambling operators with business across Europe, US and Australia, offering over 30 million customers across 9 brands a great form of entertainment in a safe, fair and sustainable environment. The company, which employs about 1,600 people, is listed on Nasdaq Stockholm Large Cap and is a member of the European Gaming and Betting Association (EGBA) and founding member of IBIA (International Betting Integrity Association). Kindred Group is audited and certified by eCOGRA for compliance with the 2014 EU Recommendation on Consumer Protection and Responsible Gambling (2014/478/EU). Read more on www.kindredgroup.com. 

Nasdaq Stockholm, KIND-SDB

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