Kindred : Year end report January – December 2019 (unaudited)

Kindred Group plc - Year end report January - December 2019 (unaudited)

Fourth quarter and full year highlights

  · Gross winnings revenue amounted to GBP 236.2 (250.1) million for the fourth
quarter of 2019, and GBP 912.8 (907.6) million for the full year 2019.
  · Underlying EBITDA for the fourth quarter of 2019 was GBP 30.7 (58.8)
million, and GBP 130.0 (203.7) million for the full year 2019.
  · Net cash generated from operating activities for the fourth quarter of 2019
amounted to GBP 30.5 (65.2) million and GBP 120.3 (206.4) million for the full
year 2019.
  · Profit before tax for the fourth quarter of 2019 amounted to GBP 13.3 (45.0)
million, and GBP 67.1 (149.5) million for the full year 2019.
  · Profit after tax for the fourth quarter of 2019 amounted to GBP 10.9 (39.3)
million and GBP 56.6 (131.6) million for the full year 2019.
  · Earnings per share for the fourth quarter of 2019 were GBP 0.048 (0.173) and
GBP 0.250 (0.580) for the full year 2019.
  · Number of active customers during the fourth quarter was 1,603,903
(1,568,574).
  · The Board of Directors propose a dividend of 0.176 (0.496) per share/SDR,
which is approximately SEK 2.20 (5.92) per share/SDR and amounts to a proposed
distribution to shareholders of GBP 39.9 (112.5) million which is 79 per cent of
the Group's free cash flow available for dividends for 2019. The dividend will
be paid out in two equal instalments in order to facilitate more efficient cash
management.
  · AGM to be held on Tuesday 12 May 2020 in Stockholm.

'The fourth quarter Sportsbook margin weigh on numbers'

'Some of the factors that impacted the fourth quarter of 2019 were the same as
we reported in previous quarters, such as the Swedish regulation and increasing
restrictions in the Dutch market. These and other headwinds are a normal part of
our business that we address, adjust to and, over time, use as a competitive
advantage. The initiatives we have taken in Sweden to return to growth has
resulted in continued recovery from the low EBITDA in the first half of the
year; however, compared to the fourth quarter of 2018 the EBITDA from Sweden was
still down by GBP 6.6 million.'

'As we noted in our trading update on 13 January 2020, there were some temporary
factors that reduced the profit for the fourth quarter. We had below average
sports betting margins in many markets, including France. The French turnover
-based gambling tax increased the negative effects of the low margins
significantly, however the tax system in France changed on 1 January 2020 to a
tax on revenues.'

'We also had the first full quarter of trading in the locally regulated US
states of New Jersey and Pennsylvania. It was expected that the first months of
trading in the US would be loss-making which is completely in line with
Kindred's experience of launches into other new markets. This is logical as
revenues grow from zero in response to our marketing investments, which includes
initial marketing production costs (USD 2 million) to go live that will be used
longer term. I am confident that we will see continued improvements in 2020 as
our business in the US grows and our revenues increase. The US is the market
with the largest long-term growth potential as regulation gathers pace, with the
US online sports betting market estimated to be USD 13.6 billion by 2023 (by the
independent research firm Eilers & Krejcik Gaming).'

'Subject to change during the remainder of the quarter, but as an initial
indication, the daily average Gross winnings revenue for the period 1 January to
9 February 2020 in GBP was 5 per cent higher (10 per cent in constant currency)
than for the same period last year. In the US, Gross winnings revenues grew by
90 per cent in January 2020 compared to December 2019,' says Henrik Tjärnström,
CEO of Kindred Group.

Today, Wednesday 12 February 2020, Kindred Group's CEO Henrik Tjärnström will
host a presentation in English at Kindred's office at Regeringsgatan 25, in
Stockholm at 08.00 CET. The presentation is also webcast live on
www.kindredgroup.com/Q42019. For those who would like to participate in the
telephone conference in connection with the presentation, the telephone numbers
are UK:  [phone] or in the USA: [phone].

The Kindred Group operates in locally-regulated markets through its gambling
licences in the UK, Sweden, France, Belgium, Denmark, Germany (Schleswig
-Holstein), Italy, Australia, Ireland, Romania, Estonia, Pennsylvania and New
Jersey, as well as other markets internationally through its gambling licences
in Malta and Gibraltar. The Kindred Group pays betting duties in all markets in
accordance with applicable local laws.

The information in this report is such that Kindred Group plc is required to
disclose under the EU Regulation of Market Abuse, MAR.

For further information please contact:

Inga Lundberg, Investor Relations
[phone]

Henrik Tjärnström, CEO
                                                             [phone]

About Kindred Group

Kindred Group is one of the world's leading online gambling operators with
business across Europe and Australia, 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

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