Kindred Posts Underwhelming Unaudited Q4 Results

The company released its unaudited results for Q4 and 2022 Wednesday, confirming it has taken immediate actions to improve profitability. The results are a preliminary estimate of the Group’s performance over the past 12 months, including Q4 results. Judging by those results, Kindred expects to see business-to-business (B2B) and business-to-customer (B2C) total revenue for 2022 halt at £1.07 billion ($1.29 billion), down from the £1.23 billion ($1.49 billion) result from 2021.

Similarly, the company anticipates gross gaming revenue from B2C in 2022 to dip by 17% to £1.04 billion ($1.26 billion) from £1.26 billion ($1.52 billion) in the same period the previous year. Underlying EBITDA for the period is expected to decrease by 61% to £129.2 million ($156.2 million), down from £332.1 million ($401.5 million) for the period between January and December 2021.

Q4 2022 Results May Fall Short of Ambitious Expectations

Besides its expected yearly results, Kindred revealed details regarding its unaudited performance for Q4 2022. The company said that total revenue, which includes B2C and B2B operations, is expected to hit £305.5 million ($369.3 million), up from the £244.9 million ($296.1 million) reported for the fourth quarter of 2021.

On the other hand, gross winnings from B2C operations in Q4 2022 are expected to increase by 23% to £295.1 million ($356.8 million), while underlying EBITDA is expected to hit £39.1 million ($47.3 million), up by 42% when compared to the corresponding period the prior year.

“Despite growth in our core markets and continued encouraging performance in the Netherlands, following re-entry to the market in July 2022, the fourth quarter fell significantly short of our ambitious expectations.“

Henrik Tjärnström, CEO at Kindred Group

Despite the expected revenue increase in Q4, 2022, Kindred’s CEO, Henrik Tjärnström, acknowledged that the fourth quarter results “fell significantly short” of what the company expected. Still, he pointed out that it was encouraging to see Kindred’s growth in core markets and an increase in its performance in the Netherlands.

Focusing on Kindred’s core markets, Tjärnström said that the company enjoyed a solid performance in the UK, Sweden and France. At the same time, he added that the Dutch market also contributed positively toward the fourth quarter revenue, helping it increase by 25% when compared to the same period the prior year.

According to Tjärnström, last year wasn’t difficult only for Kindred, but for other companies as well. He explained that despite the increase in the cost of living and geopolitical uncertainty, the company has taken a proactive approach to navigating through the difficulties. Finally, Tjärnström predicted that the company’s growing customer base in combination with active measures will ultimately help Kindred continue to grow toward its financial targets set for 2025.