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Kindred Group reported total revenue of £307.7m in Q1 2024, amid a year-on-year increase of just 0.4%.

The slight increase was helped by a 2.7% improvement in the number of active customers during the quarter, at 1.7 million.

Of the total, B2C gross winnings revenue (GWR) made up £297.6m, up 0.1%, while the company’s underlying EBITDA improved significantly by 20% to £59.3m.

Around 84% of GWR came from locally regulated markets during the quarter, an all-time high according to CEO Nils Andén.

Of the total GWR, 64% came from Western Europe at £191.5m, up 9.9% year-on-year.

A further 22%, or £65.2m, came from the Nordics following a 14.9% reduction compared to Q1 2023.

Of the remaining GWR, 10% came from Central, Eastern and Southern Europe at £29.8m, amid a year-on-year drop of 7.7%, while the remaining 4% or £11.1m came from other regions, down 21.8%.

Online casino and games accounted for the most revenue by vertical, at 56%, while sports betting generated 39% of GWR. Poker generated a further 3% of the total and other products the remaining 2%.

Overall, the business declared a profit after tax of £31.4m, up a substantial 22.7% from Q1 2023.

CEO comments

“We have had a solid start to 2024 with the underlying business operations performing well and operational initiatives moving forward according to plan,” said CEO Andén.

“The headcount reduction plans announced at the end of last year are progressing as intended and the North America exit is set to conclude towards the end of the second quarter this year. 

“Our growth plan that we launched during the fourth quarter last year, focusing on Europe and Australia, continues at pace with dedicated strategic growth projects across locally regulated markets.

“Following a solid start to the year we now have our eyes firmly set on a much sought after summer of sports with the UEFA Euros, the Copa America, and the Paris Olympics.”

Future outlook

Looking beyond the end of the quarter, the business also provided a trading update up to and including 21 April.

Average daily gross winnings revenue for the group was £3.5m during the period, 6% ahead of the daily average in Q2 2023.

Excluding North America, Kindred added, gross winnings revenue was up 8% year-on-year.

Meanwhile, the operator’s sports betting margin after free bets for the period was 11.3%, in line with Q2 2023 but ahead of the group’s long-term average of 9.8%.

The company continues to work towards its acquisition by French operator FDJ.

The deal was approved by the Swedish Financial Market Supervisory Authority in February, but still requires several regulatory approvals before going ahead, as well amendments to Kindred’s articles of association.

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