Kindred Group posts record revenue in Q3

Kindred Group has cited growth across major markets and “solid cost control” as the main reasons behind achieving record revenue during the three months to September 30.

Revenue in the third quarter came in at £193.6m (€219m/$254.3m), which is up from £142.3m in the corresponding period last year.

Kindred also paid tribute to the impact of 32Red on its business, as revenue from the brand, which it acquired in June this year, amounting to £18.6m in Q3.

Underlying earning before interest, tax, depreciation and amortisation (EBITDA) increased from £33.9m to £46.8m, while profit before tax hiked from £24.8m to £35m and profit after tax climbed from £21m to £29.9m.

For the quarter, underlying earnings per share came in at £0.137, compared to £0.095 last year.

Kindred also reported that as a result of its positive performance in the quarter, revenue for the nine months through to the end of September totalled £513.4m, up from £391.3m at the same point last year.

Underlying EBITDA also climbed from £84.4m to £110.5m, with profit before tax up from £62.7m to £76.1m and profit after tax hiking from £54.5m to £66.6m.

For the nine-month period, underlying earnings per share were £0.325, up from £0.249 last year.

Henrik Tjärnström, chief executive of Kindred, said: “I am delighted to report record revenues and profitability for Kindred Group in the third quarter of 2017 driven by strong growth across our major markets and solid cost control.

“Despite the absence of a major football event this quarter, the organic gross winnings revenue growth in constant currency was 17% compared to the same period last year, which demonstrates that we continue to gain market share.

“32Red contributed £18.6m of gross winnings revenue and £3.7m of underlying EBITDA; this acquisition also brings new expertise into our teams and additional locally regulated revenue and opportunities for future revenue and cost synergies.

“Our underlying EBITDA reached a new all-time high at £46.8m for the third quarter, up 38% compared to the same period last year.

“Our focus on mobile strategy has enabled us to remain at the forefront of industry developments; in the third quarter, gross winnings revenue from mobile grew by 51% compared to the third quarter last year and amounted to 71% of our total gross winnings revenue.”

Related article: Kindred completes 32Red deal