Kindred Group reports Q4 revenue fall but shows flat full-year growth

By Tim Poole

Kindred Group has reported a fall in revenue for Q4, although its full-year results for 2019 showed flat growth, matching the expectations set out in its January pre-trading update.

For 2019, the operator reported revenue of £912.8m ($1.18bn), which was a marginal year-on-year rise of 1%.

However, underlying EBITDA fell 26% to £130m, which was largely down to investment in the US.

Annual net cash generated from operating activities fell 42% to £120.3m, while profit before tax fell steeply to £67.1m – a 55% drop. After tax, this amount was £56.6m.

For Q4, Kindred reported a revenue fall of 6% to £236.2m, with underlying EBITDA almost halving to £30.7m.

Net cash generated from operating activities for the quarter also more than halved, to £30.5m, and profit before tax was over three times lower than the corresponding period, at £13.3m. After tax, this figure was £10.9m.

Kindred Group CEO Henrik Tjärnström said: "Some of the factors that impacted the fourth quarter of 2019 were the same as we reported in previous quarters, such as the Swedish regulation and increasing restrictions in the Dutch market.

"These and other headwinds are a normal part of our business that we address, adjust to and, over time, use as a competitive advantage.

"As we noted in our trading update on 13 January 2020, there were some temporary factors that reduced the profit for the fourth quarter. We had below-average sports betting margins in many markets, including France."

On the morning of Kindred's unaudited financial report, the company's share price was up from SEK 52.50 ($5.46) to SEK 55.24.

Tjärnström will be speaking exclusively to Gambling Insider about the operator’s trading update later today.


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