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Stockholm Stock Exchange: -16% Kindred (betting), World Cup revenues do not compensate for EU football stops

Houston’s victory in US baseball also pays off (Il Sole 24 Ore Radiocor Plus) – Milan, 13 January – Heavy slide by Kindred on the Stockholm Stock Exchange due to fourth quarter accounts below expectations. The stock of the company active in sports betting and online gambling around 10.30 showed a drop of 16.4% to 97.13 Swedish crowns and is the ‘black shirt’ of the Stoxx Europe index. Kindred, which is based in Malta, announced late yesterday evening that the turnover for the last quarter of the year, although growing, did not live up to expectations, because the revenues obtained during the World Cup they did not compensate for the reduction in activity in the quarter caused by the stoppage of the main football leagues. The margin on sports betting also decreased and some markets were affected by new regulations or reorganization initiatives. Turnover was approximately £305 million, up 24% (+3% excluding the Netherlands) and adjusted Ebitda is estimated at 39 million from 27.6 million in fourth quarter 2021. of the World Cup has disrupted the sporting calendar, causing a 25% reduction in football matches in the major leagues compared to the fourth quarter of last year and, contrary to expectations, the revenues from the World Cup have not been sufficient to offset the impact of fewer departures elsewhere,” explains the company, estimating that there were about 200 fewer top league football matches in the quarter than in the same period of 2021.

The sports betting margin was also 8.9%, “lower than the long-term average”. The Houston Astros baseball team’s victory in the World Series in November resulted in a £5.3 million payout, which weighed on accounts in North America, which were closed in the red. On the other hand, the legislation on sustainability had a negative impact on some of the main markets, including in particular Belgium, while in Norway the activity decreased as a reflection of the changes in the offer underway. Revenues, on the other hand, clearly grew in the Netherlands, France and Sweden. The group underlines that it has launched initiatives to improve profitability in the short and medium term, in particular by cutting costs.

Kindred also specifies that it does not believe that the fourth quarter of 2022 is indicative of the ‘real profit power of the group’ and therefore provides ‘indicative and non-recurring’ guidance for the adjusted Ebitda for 2023, estimating it at ‘at least 200 million pounds’. The final results for the quarter and for the year will be published on 8 February.

Founded in 1997 in England, initially under the name Unibet, the Kindred group brings together nine different brands of digital ‘gambling’, namely Bingo.com, 32Red, Casinohuone, Maria Casino, Kolikkopelit, Highroller, Unibet, Vlad Cazino, Ottokasino and is led by CEO Henrik Tjarnstroem.

Gly-col

(RADIOCOR) 13-01-23 10:50:42 (0210) 5 NNNN

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