Kindred Group announces £1.6bn revenue target for 2025
Stockholm-listed operator plans gains from in-house sportsbook and growing presence in regulated markets over the next three years
Kindred Group has announced a new set of 2025 financial targets, including revenue above £1.6bn, as its looks for significant gains following its return to the Netherlands and development of its in-house tech stack. Ahead of the operator’s Capital Markets Day, the firm revealed its ambitions for growth over the next three years which it noted was based on using “significant growth opportunities in the existing markets”. The Stockholm-listed operator said its target of >£1.6bn in revenue would be driven by “underlying market growth and further market share gains”. Kindred recently made its return to the Netherlands via its Unibet brand having been subject to a cooling-off period. Expanding further on growing its share in existing markets, Kindred said it anticipated to improve its percentage of revenue derived from locally regulated markets. During H1 2022, 78% of gross winnings revenue came from locally regulated markets, with the firm expecting to increase this to around 90% in 2025. Kindred also reported it is targeting an underlying EBITDA margin of between 21% and 22% in 2025. The operator also provided an update on its in-house Kindred Sportsbook Platform (KSP) that is currently in development, with a view to move away from its supplier partnership with Kambi. Kindred said the full implementation of the KSP, expected in 2026, would reduce costs to its sports betting business by around 30%. Elsewhere, Kindred shone a light on the group’s performance in Q3, with average daily gross winnings revenue down 12% year on year to £2.9m. Kindred also estimates revenue for the Q3 2022 to be in the range of £270m to £280m. Underlying EBITDA for Q3 2022 is estimated to be between £37m and £42m. Henrik Tjärnström, Kindred Group CEO, revealed the operator was on track to secure a 15% market share in the Netherlands by the end of 2022, and that the KSP would launch by the end of 2023. Tjärnström said: “We have been a driving force in the transformation of the industry and understood early on the requirements to succeed in a locally regulated and complex environment. “We now have critical building blocks in place and I am fully confident in the direction we are taking,” he added.