Kindred reports 7% Q3 revenue drop despite “flying start” in Netherlands

Kindred has published its third quarter financial results, noting a 7% top-line decrease year-on-year.

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In total, the group produced £278m ($322.3m) in revenue for Q3, an over £20m drop from the same period in 2021.

This was driven by a 9% decrease in B2C or gross winnings revenue, which fell to £272m from £298m. However, excluding the Netherlands, B2C revenue experienced an 8% increase, said Kindred.

This highlights the impact of the group’s withdrawal from the Dutch market. Kindred left following the introduction of the Netherlands’ new regulatory framework.

However, the group’s site began welcoming Dutch customers once more at the start of Q3 after securing a licence.

“At the start of the third quarter, we were finally able to welcome Dutch residents to our site, following a nine-month period of not accepting bets from the Netherlands,” said Kindred CEO Henrik Tjärnström.

“Thanks to our strong brand awareness, unique product offerings and an excellent team, we are off to a flying start.”

Nevertheless, the brand’s nine-month hiatus from the market has continued to take a toll, alongside other factors, such as “a seasonally tame sports calendar in July.”

Underlying EBITDA more than halved, falling to £40.3m for Q3 2022 from nearly £85m year-on-year.

But the impact of the group’s top-line decrease on profitability was mitigated “by the reassessment of the fair value of the Relax Gaming contingent consideration of £39.6m.”

Consequently, Kindred’s profit before tax for Q3 amounted to £60.3m, down from nearly £72m. Meanwhile, the group’s profit after tax amounted to £58m, down from £60.6m.

For the first nine months of 2022, Kindred has generated £763.2m in revenue, a 25% decrease year-on-year.

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