In the first quarter of 2024, the Kindred Group reported a marginal year-on-year revenue increase of 0.4 percent, amounting to a total of ￡307.7 million. This slight growth was facilitated by a 2.7 percent rise in the number of active customers during the quarter, reaching 1.7 million.
The company’s B2C gross winnings revenue (GWR) constituted ￡297.6 million of the total revenue, marking a 0.1 percent increase. Simultaneously, the company’s underlying EBITDA saw a significant improvement, increasing by 20 percent to ￡59.3 million.
A noteworthy 84 percent of the GWR was generated from locally regulated markets during the quarter, setting a new record for the company. The CEO, Nils Andén, highlighted this achievement.
Breaking down the total GWR, 64 percent (￡191.5 million) originated from Western Europe, marking a 9.9 percent year-on-year increase. The Nordics contributed 22 percent (￡65.2 million) to the total GWR, despite a 14.9 percent reduction compared to Q1 2023. Central, Eastern, and Southern Europe accounted for 10 percent (￡29.8 million) of the remaining GWR, experiencing a year-on-year drop of 7.7 percent. The final 4 percent (￡11.1 million) came from other regions, which saw a decrease of 21.8 percent.
In terms of revenue by vertical, online casino and games led the way, accounting for 56 percent of the revenue. Sports betting followed, generating 39 percent of the GWR. Poker and other products contributed 3 percent and 2 percent to the total, respectively.
The business declared a profit after tax of ￡31.4 million, marking a substantial 22.7 percent increase from Q1 2023.
CEO Andén commented on the company’s solid start to 2024, with business operations performing well and operational initiatives progressing as planned. He mentioned the headcount reduction plans announced at the end of the previous year were progressing as intended, and the North America exit is set to conclude towards the end of the second quarter this year.
The growth plan launched during the fourth quarter of the previous year, focusing on Europe and Australia, continues at pace with dedicated strategic growth projects across locally regulated markets. Andén also expressed excitement for the upcoming summer of sports, including the UEFA Euros, the Copa America, and the Paris Olympics.
Looking beyond the end of the quarter, the business provided a trading update up to and including 21 April. The average daily gross winnings revenue for the group was ￡3.5 million during the period, 6 percent ahead of the daily average in Q2 2023. Excluding North America, gross winnings revenue was up 8 percent year-on-year.
The operator’s sports betting margin after free bets for the period was 11.3 percent, in line with Q2 2023 but ahead of the group’s long-term average of 9.8 percent.
The company continues to work towards its acquisition by French operator FDJ. The deal was approved by the Swedish Financial Market Supervisory Authority in February, but still requires several regulatory approvals before going ahead, as well as amendments to Kindred’s articles of association.
