Kindred Group plc - Unaudited trading update for the fourth quarter 2019
Since the publication of the third quarter report on 25 October 2019, gross
winnings revenues across most markets have been impacted by weak sports betting
margins. The margin after free bets was 8.1 per cent for the quarter, compared
to 9.4 per cent in the fourth quarter of 2018. The gross turnover for the
sportsbook increased by 3 per cent (5 per cent in constant currencies) compared
to the fourth quarter 2018.
The most significant deviation in sports betting margin occurred in France. As
betting duties in France were calculated on the basis of betting turnover, the
financial impact was greatly increased. From 1 January 2020, the basis of
calculation of betting duties in France has changed to a tax based on gross
gaming revenue, which is more stable.
As previously communicated, Kindred has continued to grow its market presence in
the US. For the fourth quarter of 2019, the negative impact on the underlying
EBITDA was about GBP 6 million.
Gross winnings revenue and EBITDA have continued to be negatively impacted by
regulatory changes in Sweden and the Netherlands, although performance in Sweden
improved significantly compared to prior quarters.
Kindred estimates gross winning revenue for the fourth quarter of 2019 of about
GBP 235 million (Q4-2018: GBP 250.1 million) unaudited.
Underlying unaudited EBITDA for the fourth quarter of 2019 is estimated to be in
the range GBP 27-32 million (Q4-2018: GBP 58.8 million).
Active customers for the quarter amounted to 1.6 million which was an increase
of 2 per cent compared to the same quarter last year.
Following on from the already implemented cost limitation actions earlier in
2019, Kindred's management will continue to implement a number of additional
operational efficiency initiatives to ensure that the group can deliver growth
in revenues and underlying EBITDA in 2020 compared to 2019.
The Interim report for the fourth quarter of 2019 will be published on 12
Kindred Group's CEO Henrik Tjärnström will host a call in English on Tuesday 14
January 2020 at 8.00 CET.
The telephone numbers are SE: +46 8 5664 2695, UK: +44 33 3300 9267.
This information is such that Kindred Group plc is required to disclose under
the EU Regulation of Market Abuse, MAR.
For more information:
Inga Lundberg, Investor Relations, +44 788 799 6116
About Kindred Group
Kindred Group is one of the world's leading online gambling operators with
business across Europe, Australia and USA, offering over 27 million customers
across 11 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 founding 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
Kindred Group plc published this content on 13 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 January 2020 19:02:02 UTC