Kindred Group has successfully published its interim report for the period of time spanning from January to September 2023, which was not audited. Positive year-to-date results were achieved as a result of the continued stability of revenue during the third quarter.
Kindred’s revenue reached GBP 283.9 million (approximately $360 million) in the third quarter, which represents a 2% increase from the previous quarter. There was a one percent increase in the gross winnings revenue generated by the business-to-customer division, which brought the total to GBP 274.7 million ($348 million). Meanwhile, the underlying EBITDA reached GBP 42.6 million ($54 million), representing a 6% increase from the previous year.
In addition, Kindred Group disclosed that the company’s profit before taxes was 18.1 million British pounds ($19.1 million) and that its profit after taxes was 12.6 million British pounds ($16 million). An increase of 7% in the number of active customers (now 1,563,762) was recorded by the company, and earnings per share reached GBP 0.06 ($0.076) during the third quarter.
A decrease in cash flow was reported by the company, which came to a total of GBP 24.5 million ($31 million) at the end of the quarter.
An increase of 18% can be seen in the revenue for the first half of the year, which currently stands at GBP 897.6 million ($1.137 billion). The underlying EBITDA of the B2C segment increased by 64% to GBP 147.7 million ($187.2 million), while the gross winnings from the B2C segment increased by 16% to GBP 870.3 million ($1.1 billion).
During the first half of the year, the company registered profits of GBP 78.6 million ($99.6 million) and GBP 65.9 million ($83.5 million), respectively, before and after taxes took place. The earnings per share are now at 0.30 British pounds ($0.38). In total, the free cash flow for the period amounted to GBP 56.5 million, which is equivalent to $71.6 million.
According to Kindred Group, the company anticipates an underlying EBITDA of GBP 250 million ($317 million) for the fiscal year 2024. When it comes to achieving its EBITDA goal of GBP 200 million ($253.5 million) in 2023, the company is still confident that it will arrive at that target.
Kindred Group has decided to leave North America and lay off employees
Kindred’s interim chief executive officer, Nils Andén, provided commentary on the results, stating that the casino segments of Kindred’s operations in the United Kingdom and the Netherlands have continued to experience growth. In spite of this, the company experienced a number of difficulties in complying with regulatory requirements.
The company’s sports betting business underperformed, which led to suboptimal overall performance, despite the fact that the company retained its position as the market leader in the Netherlands. However, Andén anticipates that Kindred will be able to meet its EBITDA target, unless the company experiences additional setbacks as a result of unimpressive activity within the betting sector.
In the meantime, Kindred Group is continuing its strategic review as the company works toward increasing shareholder value through a transaction involving a third party. The Chief Executive Officer, Andén, took advantage of the opportunity to announce two significant operational initiatives. These initiatives include the company’s controlled exit from the North American market, a reduction in headcount and operational costs, and an increased focus on core markets.
Taking everything into consideration, it is estimated that the annualized gross cost savings that will result from leaving North America, reducing headcount, and lowering other operational costs will amount to approximately forty million British pounds
Nils Andén, CEO, Kindred Group
Andén is certain that Kindred is in a strong position to improve its performance and ensure that it achieves favorable growth across all of its core markets.
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