Kindred Q1 revenue rises 11% but profit takes considerable hit
Kindred Group has reported a year-on-year revenue rise of 11% for Q1 2020; however, the impact of the coronavirus outbreak along with exceptional costs has led to a fall in profit.
Revenue increased to £249.7m ($307.9m), although operating profit dropped 60% from 2019 to £7.3m, with profit after tax falling from £15.1m in 2019, down to just £1m.
Out of total revenue, £122.5m came from sports betting, up 15% on 2019, while casino revenue came in at £112.9m.
While underlying EBITDA was £42.5m, this was adjusted to £32.5m after the operator was hit with a £8.4m fine by the Swedish Gambling Authority (SGA) in March, for offering incentives deemed to be non-compliant
Kindred has since appealed the decision to the Swedish Administrative Court.
Profits were also hit by a £1.9m charge in connection with restructuring costs, along with a £10.8m non-cash charge related to rationalising the group’s portfolio, by closing several smaller brands, coupled with a review of acquired intangibles.
Kindred Group CEO, Henrik Tjärnström, said: “The growth was aided by a higher-than-average betting margin but underlying performance across all regions was positive.
“Our focus now is to optimise the business to meet the challenges of COVID-19. In the short term, we continue to deliver a high-quality service to our customers, while protecting our employees and ensuring business continuity and regulatory compliance.”
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