Kindred Group plc - Unaudited trading update for the fourth quarter 2022 including non-recurring indicative guidance for 2023

Underlying EBITDA for the fourth quarter of 2022 is estimated at approximately GBP 39 million (Q4 2021: GBP 27.6 million). The Underlying EBITDA for the quarter was negatively impacted by the weaker revenue than expected, a historically low gross profit margin and considerable marketing investments (marketing costs excluding affiliates amounted to approximately GBP 67 million). The gross profit margin for the fourth quarter was approximately 53.9 per cent and negatively impacted by Houston Astros winning the World Series, which resulted in a GBP 3.9 million EBITDA loss, as well as an unfavourable market mix with a higher proportion of the revenue coming from lower margin markets. Excluding North America, the Underlying EBITDA reached approximately GBP 54 million.

While the weaker than expected performance during the fourth quarter can largely be attributed to a few one-off events explained above and the headwinds in Belgium and Norway, actions are being taken to further improve profitability in the short- and medium-term. These include but are not limited to:  

Management does not believe that the fourth quarter 2022 results are indicative of the true earnings power of the business and Kindred has therefore decided to communicate a non-recurring indicative guidance for the fiscal year 2023. Kindred estimates Underlying EBITDA for the full-year to reach at least GBP 200 million assuming long-term average sportsbetting margins. This includes the actions mentioned above to further improve the profitability.

Based on the above, we remain fully confident in the outlook for the Group and the financial targets communicated at the Capital Markets Day on 14 September 2022.

Kindred Group's CEO Henrik Tjärnström will host a telephone conference in English on 13 January 2023 at 9.00 CET. If you wish to participate via webast please click the link below and if you with to participate via telephone conference please register on the link below. After registration for the telephone conference you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the webcast or the telephone conference.  

Register for the webcast here

Register to telephone conference here

The interim report for the fourth quarter of 2022 will be published on 8 February 2023 at 07.30 CET. The following results presentation and Q&A session will be available through webcast at 10.00 CET on the same day.

This disclosure contains information that Kindred Group is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 12-01-202321:00 CET.

For more information:
Patrick Kortman, Director - Corporate Development & Investor Relations, +46 723 877 438
[email protected]

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