Kindred Group reports a decline in revenue for Q1 trading update

Kindred Group’s revenue declined by 30% for Q1 2022, in large part caused by the company’s exit from the Netherlands.

All-in-all, the group’s total revenue amounted to £247m ($322m) for the first quarter of 2022, an over £100m decrease from the prior-year period’s £352.6m.

Underlying EBITDA likewise declined for the first quarter, dropping from the prior year’s £106m to £25m, though this remained at a similar level to Q4’s £27.6m.

This was all revealed in a trading update published ahead of Kindred’s full Q1 report, which will be released on 28 April.

According to this update, revenue declined year over-year due to the launch of the Dutch online casino market. It was launched last October.

Since it has yet to be approved to operate in the Netherlands, the company was forced to “temporarily cease activity in the Dutch market.”

However, even without these so-called Dutch “headwinds”, Kindred’s total revenue still experienced a 5% decline.

But nevertheless, the company insisted its active markets “performed well against the very tough comparative period.” Ultimately, the group said this highlights “the importance of a diversified market footprint.”

Q1 wasn’t entirely bad either. While Kindred’s revenue is down on a year-over-year basis, it experienced a modest rise quarter-over-quarter.

For Q4 2021, the company’s revenue amounted to £245m, meaning Q1 2022 saw it undergo an approximately £2m increase.

More information will be revealed when Kindred publishes its first quarter report later this month, most likely including an update regarding its Dutch licence application, which Kindred CEO Henrik Tjärnström said was “advancing according to plan” in the group’s Q4 and full year 2021 report.