Kindred Group (KIND) Q2 2024 earnings summary

Executive summary

• Group revenues increased by 7% year-over-year to GBP 327.6m, driven by strong sportsbook performance and significant Euro 2024 contribution.

• Underlying EBITDA rose 32% year-over-year to GBP 73.6m, with a margin of 22% (23% excluding North America).

• Locally regulated markets saw gross winnings revenue rise 12% (excluding North America), reaching an all-time high.

• Active customers increased by 12% to 1.75m, supported by a 21% increase in sports betting actives and strong engagement during Euro 2024.

• Operational exit from North America completed, with financials now split between continuing and discontinued operations.

Financial highlights

• Total revenues reached GBP 327.6m, up 7% year-over-year; free cash flow surged to GBP 41.6m from GBP 3.0m in Q2 2023.

• Net cash at quarter-end stood at GBP 63.7m, compared to net debt of GBP 3.0m a year earlier.

• Underlying EBITDA margin was 22% (23% excluding North America), up from 18% in Q2 2023.

• Cost of sales as a percentage of revenues improved to 12.9% from 14.1% last year; marketing spend as a percentage of revenues decreased to 18.5% from 20.3%.

• Earnings per share were GBP 0.21, up from GBP 0.13 year-over-year.

Outlook and guidance

• Full-year 2024 underlying EBITDA guidance reaffirmed at GBP 250m.

• Q3 2024 trading update shows average daily GWR up 10% (12% excluding North America) versus Q3 2023.

• Sports betting margin for early Q3 at 10.6%, above the long-term average.