Kindred “outpaces market” with 22% Q2 growth
Operator hails importance of 32Red to growing regulated revenue mix
Kindred this morning reported a 22% jump (constant currency) in Q2 revenues to £166.6m, with the firm saying it is “reaping the benefits” of marketing investments made in previous quarters.
Growth was slightly more muted (18%) when stripping out acquisitions but the firm said it was confident it was still outpacing market growth and taking market share.
Underlying EBITDA for the second quarter of 2017 was £33.4m, up 28% on the same period last year.
32Red contributed £4.7m in revenues, with underlying EBITDA of £1.2m, while 38% of group revenues came from regulated markets.
“The acquisition of 32Red will significantly accelerate our development and profitability in the world’s largest locally regulated market,” said Henrik Tjärnström, group CEO.
Elsewhere, revenues from mobile climbed by 52% and accounted for 73% of total revenues.
Active customers climbed to almost 1.2m, with 32Red contributing a little over 39,000.
Analysts at Regulus Partners raised some concerns with EBITDA margin at the relatively low number of 20% despite the fact that nearly three quarters of revenues are not locally licensed and taxed.
Kindred shares were up 1.5% to 91SEK in early trading.