Q1 revenue and EBITDA significantly down for Kindred Group
Kindred Group’s total revenue for the first quarter of 2022 stood at £246.7m ($309.6m).
Gross winnings revenue decreased by 31% year-on-year to £242.4m, while underlying EBITDA decreased by a significant 77% to £24.5m during the January-March period.
Profit before tax amounted to £7.6m, while profit after tax was £6.4m.
Poor earnings per share rate of £0.03 did not stop Kindred from purchasing 1,927,590 shares in Q1 2022, at a total price of £15.4m.
Free cash flow was in the red, though, amounting to -£5.5m. The company is surely hoping for a better second quarter this year, and to improve upon its active customer numbers of 1,377,317.
The company also notes that a weak sports betting margin of under 8% has hurt winning revenue for sports betting. The margin stood at 11% in the same period last year.
Gross gaming revenue for casino products was more stable, with figures remaining at the same level they were in Q1 2021.
Kindred Group’s CEO, Henrik Tjärnström, commented on the results, citing the cessation of activity in the Dutch market as negatively impacting Kindred’s financial results.
He said: “While the start of 2022 has seen societies returning to normal after two years of Covid-19 impacting our lives, we are today witnessing worrying geopolitical development in Europe, bringing both uncertainty and tragedy that will leave its mark for the foreseeable future.
“Whilst these developments have had a limited impact on Kindred’s performance for the first quarter of 2022, we continue to notice an impact from post-Covid-19 normalisation across markets, as well as the decision to cease activity in the Dutch market in Q3 2021.”
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