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Kindred Group plc – Interim report January – March 2020 (unaudited)

Reading Time: 3 minutes
First quarter highlights
- Gross winnings revenue amounted to GBP 249.7 (224.4) million for the first quarter of 2020, an increase of 11 per cent (14 per cent in constant currency) from the same period last year.
- Underlying EBITDA for the first quarter of 2020 was GBP 42.5 (31.1) million.
- Items affecting comparability of GBP 24.0 million for the first quarter of 2020 included specific charges of GBP 20.7 million recognised as follows:
| GBP ‘m | |
| Personnel restructuring costs | 1.9 |
| Disputed regulatory sanction | 8.0 |
| EBITDA impact | 9.9 |
| Accelerated amortisation of acquired intangible assets | 10.8 |
| Profit before tax impact | 20.7 |
- The result was also impacted by foreign exchange losses of GBP 3.5 million on retranslation of borrowings, of which GBP 3.1 million are accounting unrealised losses.
- Profit before tax for the first quarter of 2020 amounted to GBP 2.4 (17.7) million.
- Profit after tax for the first quarter of 2020 amounted to GBP 1.0 (15.1) million.
- Free cash flow for the first quarter of 2020 amounted to GBP 32.3 (-6.6) million. GBP 36.7 million of borrowings was repaid in the quarter and the net debt position has improved since 2019 to GBP 133.4 million as at 31 March 2020.
- Earnings per share for the first quarter of 2020 were GBP 0.004 (0.067).
- Number of active customers during the first quarter was 1,531,302 (1,631,636).
“A resilient business operating in exceptional circumstances”
“Kindred has delivered a strong first quarter in returning to double-digit growth in Gross winnings revenue of 11 per cent (14 per cent in constant currency). The growth was aided by a higher than average Sports 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.”
“As part of the previously communicated plans to review the Group’s cost base, we have recognised a charge of GBP 1.9 million in the first quarter of 2020 in connection with restructuring costs. We have additionally decided to rationalise the Group’s brand portfolio and have announced the pending closure of several smaller brands. This, together with a wider review of acquired intangibles, has triggered a non-cash charge of GBP 10.8 million in the first quarter.”
“In line with the activity for the second half of March mentioned in our trading update on 2 April 2020, daily revenues for the period from 1 to 19 April have continued to be around GBP 2.2 million. Revenues and margins are less volatile in current circumstances because of the reduced proportion of revenues coming from Sports betting. The largest decline in daily revenues has been in France, which is expected due to its high reliance on sports, but it remains a low margin territory for Kindred because of the high betting taxes.”
“We have seen positive growth in other products and we have acted quickly to adapt our marketing and other investments and to maintain an even tighter control over all operating costs. If we see any further deterioration in the business, we will not hesitate to make further adjustments.”
“As a pure digital company, we are well prepared and ready to take the opportunities that will come when markets start to normalise. I am very confident that Kindred’s well-diversified and financially sound business model will enable us to emerge stronger over the coming quarters,” says Henrik Tjärnström, CEO Kindred Group.
Today, Friday 24 April 2020, Kindred Group’s CEO Henrik Tjärnström will host a web cast in English at 09.00 CEST on www.kindredgroup.com/Q12020. For those who would like to participate in the telephone conference in connection with the presentation, the telephone numbers are UK: +44 33 3300 9034 or in the USA: +1 833 249 8406.
The Kindred Group operates in locally-regulated markets through its gambling licences in the UK, Sweden, France, Belgium, Denmark, Germany (Schleswig-Holstein), Italy, Australia, Ireland, Romania, Estonia, Pennsylvania and New Jersey, as well as other markets internationally through its gambling licences in Malta and Gibraltar. The Kindred Group pays betting duties in all markets in accordance with applicable local laws.
The information in this report is such that Kindred Group plc is required to disclose under the EU Regulation of Market Abuse, MAR.
Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Kindred Group plc – Interim report January – March 2020 (unaudited)
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With the political uncertainty resolved, the focus now shifts to implementation. For operators, this means the race to compliance—and market entry—has effectively begun.
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With the legislation passed, the roadmap to the market opening is now set. Operators must use the coming months to prepare for a rigorous licensing process.
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Early 2026: The application window is expected to open. The regulator will begin accepting and reviewing license applications.
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2026 (Throughout): The “preparatory year.” This period is dedicated to vetting applicants, ensuring technical compliance, and establishing the new supervisory authority.
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January 1, 2027: The regulated Finnish market officially opens. Licensed operators can go live with betting and online casino services.
Entering the Finnish Market with Nordic Legal
Navigating a new jurisdiction is complex, but it doesn’t have to be inefficient. With extensive experience advising on gaming licences across the Nordic markets, Nordic Legal brings a proven, practical approach to the Finnish process.
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Reusing documentation where regulations overlap.
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Engaging constructively with the Finnish authority to ensure a smooth process.
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Translation of all required documents.
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Guidance and completion of complex application forms.
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Full project management from start to submission.
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Direct communication with the Finnish regulator on your behalf.
Next Steps
The window for preparation is narrowing. Contact your usual Nordic Legal advisor today to discuss the new legislation or our Licence Application Package. Alternatively, reach out to us directly to secure your place in Finland’s upcoming regulated market.
The post Finland’s Gambling Reform Is Official – What Happens Next? appeared first on Gaming and Gambling Industry Newsroom.
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The post GAMEPOP: The Culture of Play by Red Bull Media House – the first bookazine devoted entirely to video game culture appeared first on Gaming and Gambling Industry Newsroom.
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The post Red Rake Gaming Expands Global Presence Through Partnership with QTech Games appeared first on Gaming and Gambling Industry Newsroom.
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