Kindred claims record revenue haul in Q1

Kindred Group has revealed that it was able to generate a record level of revenue during the three months to March 31, 2017.

Gross winnings revenue in the first quarter came in at £153.2 million (€1801.1 million/$196.4 million), up 25% on the £122.4 million posted in the same period last year.

Underlying earnings before interest, tax, depreciation and amortisation climbed from £28.5 million to £30.3 million, while the number of active customers with the company increased to more than 1.2 million.

While profit before tax dropped from £22.5 million to £18.2 million, Kindred said this included M&A costs of £600,00 related to the proposed acquisition of 32Red, as well as non-cash items amounting to £3.9 million.

Profit before tax stood at £16.3 million at the end of the quarter, while earnings per share were £0.072.

Henrik Tjärnström, chief executive of Kindred, said: “Despite a low sports betting margin over the first quarter of 2017, gross winnings revenue grew by 25% to £153.2 million.

“In line with the fundamentals of our growth strategy, we have continued to invest heavily in marketing for both new customer acquisition and reactivation of existing customers.

“While this may reduce profits in the short term, we are confident that, as we have previously proven, this will drive sustained growth in gross winnings revenue and profits.”

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