henrik tjärnström ceo - kindred group · 2018-03-12 · 1 henrik tjärnström ceo q3 2017 27...

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Henrik TjärnströmCEOQ3 2017

27 October 2017

© Kindred Group plc 2017

• Financial results• Business overview• Summary

OutlineOutline

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© Kindred Group plc 2017 3

Financial results


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Q3 2017

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“A record quarter for revenue and profit, supported by the acquisition of 32Red”

Q3 2017 Key Report Highlights


EBITDA

GBP 46.6m(+41%)

Gross winnings revenue

GBP 193.6m(+36%)

Earnings per share

GBP 0.131(+44%)

Active customers

1,219,761(+14%)

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Free Cash Flow

GBP 60.1m(+186%)

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391.3

242.7234.0



76.5 76.1122.4 153.2

77.1 80.5

126.6166.6

80.4 86.1

142.3

193.6

78.0111.4

152.8

2012 2013 2014 2015 2016 2017

Q1

Q2

Q3

Q4

GBPm

226.7268.0

312.0354.1

544.1513.4

Gross winnings revenue from mobile


0

20

40

60

80

100

120

140

160

Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4 Q12016

Q2 Q3 Q4 Q12017

Q2 Q3

+51% GBPm

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Q3 2017 P&L FX impact v Q3 2016


5.4

SEK 10.64811.194 4.9%NOK 10.41610.934 4.7%EUR 1.1141.177 5.4%DKK 8.2878.760 5.4%

Q3 2017Q3 2016Avg rate Movement

GBPmGWR increase 8.6CoS / Opex increase -5.2FX loss on operating items -1.0EBITDA FX impact Q3 2017 2.4FX loss on loan repayment -0.4FX loss on other items below EBITDA -0.1Profit before tax impact 1.9

AUD 1.6581.732 4.3%

Weighted average movement in FX rates: 4-5%

Geographic balance– Key Report Highlights Q3 2017


Nordics

Western Europe

+20% +13%

+60% +54%

GWR as reported in GBP

GWR in constant currency

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+13%

+28%

Organic GWR in constant currency

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Other Costs analysisExcl. Non-recurring items


Share of GWR (as reported) 8%12% 8% 9%9%

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GBPm2013

FY2014

FY2015

FY2016

FY2017

Q3

Reported Other Costs 52.3 47.9 43.1 69.4 29.6

Depreciation & Amortisation -18.9 -16.8 -13.0 -23.8 -10.2

FX loss/gain on Opex -0.6 -1.8 -0.7 -0.6 -1.0

Other Costs post D&A and FX 32.8 29.3 29.4 45.0 18.4

81.8

50.857.0

EBITDA – Excl 2014 Kambi one-off item


21.3 14.427.6 29.4

14.0 19.0

21.130.521.7 17.4

33.1

46.6

18.4 26.2

38.9

2012 2013 2014 2015 2016 2017

GBPm

Q1

Q2

Q3

Q452.563.4

75.5 77.0

120.7106.5

7

0.237

0.160

0.0440.087 0.072

0.059

0.059 0.0900.057

0.0910.131

0.084

0.129

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

2012 2013 2014 2015 2016 2017

Q3

Q4

EPS development – Excl 2014 one-off items

Q1

Q2

GBP

0.244

0.366


0.293

Business overview


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0100200300400500600700800900

1,0001,1001,2001,300

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Active customers


Thousands

2011 2012 2013 2014 2015 2016 2017

Sports betting gross marginCombined


0%1%2%3%4%5%6%7%8%9%

10%11%

Before free bets After free bets

2011 2012 2013 2014 2015 2016 2017Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q2 Q3 Q4 YR Q1 Q3Q2

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Product & geographic balance Gross winnings revenue over time


By product, % By geography, %

Pre-game betting

Poker

Casino &Games

Other

Live betting

Nordics

WesternEurope

CES

Other

23 24 21 22 24 22 23 21 21

23 22 23 23 23 23 20 23 23

2 2 3 2 22 2 2 2

49 48 50 51 48 49 51 51 51

3 4 3 2 3 4 4 3 3

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

47 43 44 42 45 44 45 41 40

8 9 10 9 9 8 77 6

42 45 44 47 44 46 46 50 52

3 3 2 2 2 2 2 2 2

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q32015 20152016 20162017 2017


Netherlands update

Coalition (4 parties) government agreement announced on 10 October 2017

– Online gambling reform will be continued

• Voting in the Senate anticipated for Q1 2018 • Secondary legislation yet to be published

and consulted on• Regulator counting on market

opening in Q2 2019

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Active customers

120,171

Underlying EBITDA

GBP 3.7m(GBP 4.9m since

acquisition)


GBP 18.6m(GBP 23.3m since

acquisition)

• Q3 first quarter with 32Red fully consolidated• Integration into the group in progress• Move of 32Red employees to Kindred Gibraltar

office planned for Q1 2018

32Red casino Q3 highlights


32Red casino Q3 highlights

Record number of active players

in September

The best quarter ever for new

casino depositors

Record level for both volume

and value

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Update of migration projects


Migration to the group platform:• Focus is on delivering a brand new racing

product for Unibet and Stan James customers• Post migration, Unibet to remain the sportsbook

and racing brand for the Kindred Group• Target date for migration: Q1 2018

Migration to the group platform:• Focus is on ensuring product and marketing

functionality is enhanced to support a successful migration

• Target date for migration: Q2 2018


Livestream on Unibet.beJupiler Pro League

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Acquired the rights to stream Belgian

first division football seasons 2017-2020

Local commentary

in 3 languages

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at 2017 UK Customer Experience Awards

Kindred Group wins

Return on CX’ Gold Award • Recognised for our ground breaking data driven

& innovative predictive analytic approach• Allowing us to focus on areas of CX that not

only mean most to the customer, but also bring most financial value to the group



Summary Q3 2017• ATH in GWR and profit• Strong organic growth supported by the

acquisition of 32Red• Group continues to gain market shares• GWR +36% (+17% organic in constant FX)• Reported EBITDA +41% (+22% organic

in constant FX)• Earnings per share +44%

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Q&AQ&A© Kindred Group plc 2017 25

Contact

14 Feb 2018Q4 will be published at 7.30 CET

25 April 2018Q1 will be published at 7.30 CET

25 July 2018Q2 will be published at 7.30 CET

26 Oct 2018Q3 will be published at 7.30 CET

15 May 2018AGM

Calender

Investor RelationsInga Lundberg

+44 788 799 6116

[email protected]

henrik tjärnström ceo - kindred group · 2018-03-12 · 1 henrik tjärnström ceo q3 2017 27...

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