Kindred, the renowned online gambling operator, has announced impressive financial results for Q2 2023, demonstrating robust revenue growth. While overall revenues surged by 29% compared to the same period last year, reaching £238.7 million, a closer examination reveals the notable influence of the Netherlands market. Excluding earnings from the Netherlands, Kindred’s revenue showed a modest 1% increase.
Netherlands Market Significance:
Kindred emphasized the significance of the Netherlands market in its quarterly report, revealing total revenues of £63.6 million attributed to this region. This underscores the importance of regulatory developments and market expansions for online gambling operators.
Revenue Trends:
A historical overview of Kindred’s Q2 revenues from 2020 to 2023 illustrates fluctuations in performance. After recording £235.1 million in Q2 2020, revenues experienced a remarkable 55% increase to £363.7 million in Q2 2021. However, in Q2 2022, revenues dropped significantly to £238.7 million, marking a 38% decline due to the loss of Dutch revenues. In 2023, Kindred successfully regained its foothold in the Netherlands, contributing to the revenue boost.
EBITDA and Profit After Tax:
Kindred’s EBITDA for Q2 2023 demonstrated substantial year-on-year growth, reaching £51.4 million compared to £21.6 million in Q2 2022. This upward trend in EBITDA is reflected in the performance graph since 2020. Additionally, Kindred’s profit after tax for Q2 2023 amounted to £27.7 million, a significant increase from £5.8 million in Q2 2022. The past year showcased fluctuations in profit after tax, as depicted in the graph below.
Share Price Volatility:
Kindred’s shares have exhibited a degree of volatility in the past six months. Starting the year at SEK 102.00 ($9.80) per share, prices experienced uneven fluctuations, notably rising to SEK 130.85 on 24 May. These price movements were influenced by the Kindred Board’s announcement of exploring a potential company sale. Subsequent reports of dissent among Board members regarding a sale led to share price declines, currently resting at SEK 124.00.
Year-to-Date Performance:
For the year-to-date, Kindred’s revenue has reached £613.7 million, a substantial 24% increase compared to the same period in the previous year. Similarly, EBITDA for H1 2023 has surged to £98.7 million, up from £43.6 million in the previous year. Notably, Kindred’s harmful gambling rate remained at 3.1%, a figure it aims to reduce to 0% in the long term.
Kindred’s robust Q2 2023 financial results underscore the impact of the Netherlands market on its revenue growth. The company’s ongoing sale exploration and recent change in CEO leadership demonstrate the potential for strategic developments. While insiders may possess unique insights, Kindred’s performance remains promising within a dynamic and evolving online gambling landscape.