Kindred posts strong first quarter results for 2017

ting the market, Kindred Group Plc posted a strong start to 2017 as the company benefits from record high numbers in active customers and Gross winnings revenue.

Despite a low sports betting margin over the first quarter of 2017, gross winnings revenue rose by 25% to £153.2m, with active customers reaching a record high of 1.2 million.

Underlying EBITDA for the first quarter was £30.3m, whilst profit before tax amounted to £18.2m.

The results also factor in the company’s M&A costs of £0.6m in relation to the proposed acquisition of 32Red and non-cash items of £3.9m.

Commenting on the results, Kindred Group's CEO, Henrik Tjärnström says: “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 full year we still expect it to average a few percentage points below 30%.

“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.”