Kindred Group plc - Year End Report January - December 2019 (Unaudited)

"Some of the factors that impacted the fourth quarter of 2019 were the same as we reported in previous quarters, such as the Swedish regulation and increasing restrictions in the Dutch market. These and other headwinds are a normal part of our business that we address, adjust to and, over time, use as a competitive advantage. The initiatives we have taken in Sweden to return to growth has resulted in continued recovery from the low EBITDA in the first half of the year; however, compared to the fourth quarter of 2018 the EBITDA from Sweden was still down by GBP 6.6 million."

"Some of the factors that impacted the fourth quarter of 2019 were the same as we reported in previous quarters, such as the Swedish regulation and increasing restrictions in the Dutch market. These and other headwinds are a normal part of our business that we address, adjust to and, over time, use as a competitive advantage. The initiatives we have taken in Sweden to return to growth has resulted in continued recovery from the low EBITDA in the first half of the year; however, compared to the fourth quarter of 2018 the EBITDA from Sweden was still down by GBP 6.6 million."

"As we noted in our trading update on 13 January 2020, there were some temporary factors that reduced the profit for the fourth quarter. We had below average sports betting margins in many markets, including France. The French turnover-based gambling tax increased the negative effects of the low margins significantly, however the tax system in France changed on 1 January 2020 to a tax on revenues."

"We also had the first full quarter of trading in the locally regulated US states of New Jersey and Pennsylvania. It was expected that the first months of trading in the US would be loss-making which is completely in line with Kindred's experience of launches into other new markets. This is logical as revenues grow from zero in response to our marketing investments, which includes initial marketing production costs (USD 2 million) to go live that will be used longer term. I am confident that we will see continued improvements in 2020 as our business in the US grows and our revenues increase. The US is the market with the largest long-term growth potential as regulation gathers pace, with the US online sports betting market estimated to be USD 13.6 billion by 2023 (by the independent research firm Eilers & Krejcik Gaming)."

"Subject to change during the remainder of the quarter, but as an initial indication, the daily average Gross winnings revenue for the period 1 January to 9 February 2020 in GBP was 5 per cent higher (10 per cent in constant currency) than for the same period last year. In the US, Gross winnings revenues grew by 90 per cent in January 2020 compared to December 2019," says Henrik Tjärnström, CEO of Kindred Group. 

Today, Wednesday 12 February 2020, Kindred Group's CEO Henrik Tjärnström will host a presentation in English at Kindred's office at Regeringsgatan 25, in Stockholm at 08.00 CET. The presentation is also webcast live on www.kindredgroup.com/Q42019. For those who would like to participate in the telephone conference in connection with the presentation, the telephone numbers are UK: +44-33-3300-9274 or in the USA: +1-833-526-8382.

The Kindred Group operates in locally-regulated markets through its gambling licences in the UK, Sweden, France, Belgium, Denmark, Germany (Schleswig-Holstein), Italy, Australia, Ireland, Romania, Estonia, Pennsylvania and New Jersey, as well as other markets internationally through its gambling licences in Malta and Gibraltar. The Kindred Group pays betting duties in all markets in accordance with applicable local laws.

The information in this report is such that Kindred Group plc is required to disclose under the EU Regulation of Market Abuse, MAR.

For further information please contact:
Inga Lundberg
Investor Relations  
+44-788-799-6116

Henrik Tjärnström
CEO  
+46-723-878-059

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