Kindred Group World Cup turnover “good” but not enough to offset major fixtures

Kindred Group generated almost £305m ($372.6m) in total group revenue for Q4 2022, showing a "strong" year-on-year increase, according to its unaudited trading update. Compared to the same period last year, total revenue climbed by 24% – but this figure was only 3% excluding the Netherlands.

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Kindred saw 1.83 million active customers during the quarter, which is its second-highest recorded number, and an increase of 25% over the fourth quarter of last year. This growth was supported by marketing expenditures before and during the World Cup.

Despite having a "good" turnover rate during the World Cup in 2022, there were fewer significant football league matches played during the quarter than during the same time in 2021, which marks an interesting trend: indeed, while the World Cup was popular, the fact it was played in the winter proved more of a hindrance to Kindred.

While there was ongoing significant growth in several regions, including the Netherlands, France and Sweden, Kindred said regulatory changes and its focus on sustainability in important markets like Belgium had a negative impact on revenue.

Meanwhile, expected underlying EBITDA for the fourth quarter of 2022 sits at around £39m, a significant improvement year-on-year.

The quarter's underlying EBITDA was impacted by lower-than-expected sales. For Q4, gross profit margin was roughly 53.9%.

The Houston Astros winning the World Series also had a negative effect, causing an EBITDA loss of £3.9m. With North America excluded, underlying EBITDA was about £54m.

Kindred estimates its underlying EBITDA for the full year to reach at least £200m, assuming average long-term margins for sports betting.

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