Kindred's Dutch market exit drives revenue down 30% in Q1

Online gambling company Kindred Group has now shared a trading update for the first quarter of 2022. The group posted total revenue amounting to approximately £247 million ($322 million), down from the Q1 2021 period due to a Dutch market exit and tough comparatives, the business said on Friday.

The Unibet owner showed confidence in the results achieved for the period, stating it maintained its business momentum from the previous quarter. However, when compared to the first quarter of 2021, activity in Q1 2022 was heavily impacted by the decision to temporarily cease activity in the Dutch market, taken in September last year.

This temporary negative impact resulting from the Netherlands exit, combined with “continued selective investments in future growth,” is estimated to result in an underlying EBITDA of approximately £25 million ($32.6 million) for the first quarter of the current year. This is at a similar level to the results presented for the fourth quarter of 2021.

Additionally, Kindred’s active markets declined 5% (1% in constant currency) for Q1 2022, although the business attributes this to measuring performance against “a very tough comparative period.” The group believes this highlights the importance of a diversified market footprint.

Despite these headwinds, the Nasdaq Stockholm-listed company claims to have delivered “a solid quarter” with total group revenue of approximately £247 million ($322 million), which was nevertheless down from a total £352.6 million ($459.7 million) delivered in Q1 2021.

Total revenue declined by 30% (27% in constant currency) against the same period last year, again a fact partly responding to the Dutch market exit. Excluding the impact of the Netherlands, Kindred says the corresponding decline was reduced to 5% (1% in constant currency). The full interim report for the first quarter of 2022 will be published on April 28.

Hello Canada! 👋🏒🇨🇦 We are live! The Unibet Sportsbook and iGaming products are available to customers in Ontario via https://t.co/pZLHghqkvC and the mobile apps are available in Apple Store and soon in Google Play Store! https://t.co/M0JypiDBcO pic.twitter.com/5hYwIiLs9b

— Kindred Group (@KindredGroup) April 4, 2022

Kindred announced last month it would be expanding its presence in the regulated North American market, after securing a license from the Alcohol and Gaming Commission of Ontario (AGCO) to operate in the Canadian province. The jurisdiction opened its new online gaming market on April 4.

Unibet launched its sproducts upon market debut. “It has been a great effort from the Kindred teams and our partners to get the Unibet brand live in Ontario on Day 1,” said Amanda Brewer, Country Manager Canada on the date of launch. “This highlights our ambition in this significant market, where we intend to continue to build on our international success.”

The license marks the seventh jurisdiction in North America where Kindred is represented by its flagship brand, Unibet. The Unibet Sportsbook and iGaming products is available to customers in Ontario via on.unibet.ca, while the mobile apps are available in Apple Store and Google Play Store.