Kindred Group (KIND) Q3 2024 earnings summary

Executive summary

• Total revenue for Q3 2024 rose 4% year-over-year to GBP 294.5 million, with underlying EBITDA up 49% to GBP 63.4 million and active customers increasing 9% to 1,701,100.

• The acquisition by La Française des Jeux (FDJ) was approved by over 91% of shareholders, with FDJ's stake expected to reach 98.6% post-settlement.

• Kindred will exit .com markets lacking clear regulatory paths, impacting its ability to fully achieve the GBP 250 million underlying EBITDA target for 2024.

Financial highlights

• Q3 2024 gross winnings revenue (B2C) increased 3% to GBP 283.1 million; underlying EBITDA margin reached 22%.

• Profit before tax for Q3 was GBP 12.5 million, down from GBP 15.1 million, due to GBP 30.9 million in strategic review costs related to the FDJ transaction.

• Profit after tax was GBP 9.6 million, with a loss from discontinued operations of GBP 0.4 million.

• Free cash flow for Q3 was negative at GBP -4.2 million, compared to GBP 24.5 million in Q3 2023.

• For Jan–Sep 2024, total revenue grew 4% to GBP 929.8 million, underlying EBITDA rose 33% to GBP 196.3 million, and profit after tax reached GBP 85.5 million.

Outlook and guidance

• On track to approach the GBP 250 million underlying EBITDA target for 2024, but market exits post-FDJ acquisition will negatively affect the ability to fully reach this goal.

• Continued focus on cost control, automation, and product innovation, including the launch of a proprietary sportsbook in a major market.