SBC News Kindred posts strong 2017 opening momentum as group prepares for 32 Red enlargement

Kindred posts strong 2017 opening momentum as group prepares for 32 Red enlargement

Stockholm-listed operator, Kindred Group Plc has declared a strong start to 2017 as the company benefits from an enlarged European sports betting and igaming portfolio of brands and assets.

Publishing its ‘unaudited Q1 2017’ interim results Kindred would declare a consecutive ‘all-time’ high in group revenues of £153 million up 25% on corresponding 2015’s £122 million. Kindred governance detailed that group revenue performance had been driven by significant boost is sports betting wagering which hit a record £1.1 billion mark.

Boosted by a further ‘all-time record’ in active player numbers of + 1.2 million, Kindred would further record an underlying period EBITDA of £30.3 million (Q1 2016: £28.5 million).

Updating investors Kindred governance would post period operating profits of £18.2 million, down on  Q1 2016’s £22.5 million as the company absorbed M&A costs relating to its £175 million acquisition of London AIM igaming operator 32 Red Plc.

Closing its opening quarter of high activity, Kindred governance would declare profits after tax of £16.3 million (Q1 2016: £20 million). The company stated that it was pleased with underlying results against a strong comparative period in 2016.

Issuing a corporate statement Henrik Tjärnström, CEO of Kindred Group commented on company Q1 performance

“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. For the quarter, marketing was 29 per cent of Gross winnings revenue; however, for the full year we still expect it to average a few percentage points below 30 per cent.”

“Our cash offer for the UK operator 32Red will, from the second quarter of 2017, instantaneously increase both revenue and profit from the very significant UK market. This acquisition will supplement our current strong organic growth and will significantly increase the Group’s overall growth in the future, especially during the first twelve months. The acquisition will also bring new expertise into the Group and offer both immediate and future opportunities for both revenue and cost synergies.”

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