Kindred Group sees record revenue in Q3

Revenue amounted to £193.6m, up on last year.

Kindred highlighted the impact of 32Red on its business, as revenue from the brand, which it purchased in June this year, came in at £18.6m during the period.

Underlying earning before interest, tax, depreciation and amortisation (EBITDA) climbed from £33.9m to £46.8m, while profit before tax increased from £24.8m to £35m and profit after tax jumped from £21m to £29.9m.

For the quarter, underlying earnings per share came in at £0.137, compared to £0.095 last year.

As a result of its positive performance in the quarter, revenue for the nine months through to the end of September was £513.4m, up from last year’s £391.3m.

Underlying EBITDA also jumped from £84.4m to £110.5m, with profit before tax up from £62.7m to £76.1m and profit after tax increasing from £54.5m to £66.6m.

For the nine-month period, underlying earnings per share were £0.325, up from £0.249 last year.

Commenting on the results, Henrik Tjärnström, chief executive of Kindred, said, “I am delighted to report record revenues and profitability for Kindred Group in the third quarter of 2017 driven by strong growth across our major markets and solid cost control.

“Despite the absence of a major football event this quarter, the organic gross winnings revenue growth in constant currency was 17% compared to the same period last year, which demonstrates that we continue to gain market share.

“32Red contributed £18.6m of gross winnings revenue and £3.7m of underlying EBITDA; this acquisition also brings new expertise into our teams and additional locally regulated revenue and opportunities for future revenue and cost synergies.

“Our underlying EBITDA reached a new all-time high at £46.8m for the third quarter, up 38% compared to the same period last year.

“Our focus on mobile strategy has enabled us to remain at the forefront of industry developments; in the third quarter, gross winnings revenue from mobile grew by 51% compared to the third quarter last year and amounted to 71% of our total gross winnings revenue.”