Kindred Sees Revenue Down 15% In “challenging” 2022, Company Highlights Responsible Gaming Efforts

Kindred Sees Revenue Down 15% In “challenging” 2022, Company Highlights Responsible Gaming Efforts

Online gaming giant Kindred called 2022 “a challenging year for group profitability” in its Annual and Sustainability report for the 2022 financial year. The report, which provides insight into the group’s long-term strategy, as well as figures within Kindred’s sustainability strategy, shows revenue for 2022 amounted to GBP 1 billion ($1.2 billion), a decrease of 15% from the prior year.

Challenges in several markets resulted in year-on-year decreases in both underlying EBITDA, down by 61% to GBP 129.2 million ($155.8 million); and earnings per share, down by 59% to GBP 0.54 ($0.65). Gross winnings revenue from the B2C business decreased by 17%.

Despite this, management said the group continues to deliver on its strategic aim for sustainable growth from locally regulated markets, with gross winnings revenue from these markets now amounting to 79% of total revenue, a significant increase from the prior year.

Overall performance in 2022 was significantly impacted by the temporary exit from the Dutch market between October 1, 2021 and July 3, 2022. This contributed heavily to the decrease in yearly active customers for the group’s B2C business by 12% to 3 million, as well as the 15% decline in revenue.

Regulatory headwinds in other markets, such as the UK, Belgium and Norway, as well as tough prior-year comparatives, also limited top-line growth. However, the group continued to invest in key strategic areas to drive the business forward, according to officials.

These investments include both the development of its complete in-house sportsbook platform (KSP) and continued investment in the North American market which, although representing a large growth opportunity, contributed negative underlying EBITDA of GBP 40.6 million ($48.9 million) for the year.

The acquisition of the Relax Gaming business in 2021, however, has continued to contribute positively, with an underlying EBITDA contribution of GBP 13.1 million ($15.8 million) for the year. The underlying EBITDA margin decreased from 26% in the prior year to 12% in 2022.

In the report, the company also set out its long-term sustainability ambition of achieving zero percent gross winnings revenue from harmful gambling. Kindred has also continued to work on limiting climate impact has verified its targets in accordance with the Science Based Targets Initiative (SBTi).

Moreover, the gambling giant has entered into new partnerships, participated in local community initiatives and continued the development of its diversity, equity and inclusion agenda.

CEO Henrik Tjärnström highlighted Kindred’s focus going forward: “While 2022 has been a challenging year, I am proud and grateful for the hard work put in by all my colleagues at Kindred and at Relax Gaming.”

“We have work to do, and we have set ambitious targets for 2025, as well as an Underlying EBITDA guidance of GBP 200 million for the full year 2023. I am fully confident we will achieve this and as a team we will execute on the strategy we have set,” he added.

You can read the full report here.