henrik tjärnström ceo - kindred group › globalassets › ... · 3 kindred’s share of the...

1

Henrik TjärnströmCEOQ4 2017

14 February 2018

© Kindred Group plc 2018

• Financial results• Business overview• Summary

Outline

2

2

© Kindred Group plc 2018 3

CAGR 2015-2020 2.6%

European gambling market (incl lotteries)


0102030405060708090

100110

2010 2011 2012 2013 2014 2015 2016 2017e 2018e 2019e 2020e

EURbn

Offline

Online

Source: H2GC Dec 2017

4

3

Kindred’s share of the European online market

0

5

10

15

20

25

30

35

40

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e 2018e 2019e 2020e

EURbn

Market share

Source: H2GC Dec 2017

CAGR 2011-2017 Online 12.2% | Kindred 26.3%

1.9%

3.9%


European gambling marketMobile interactive


%

0

10

20

30

40

50

60

70

80

2010 2011 2012 2013 2014 2015 2016 2017e 2018e 2019e 2020e 2021eSource: H2GC Dec 2017

6

Kindred

4

Financial results



Q4 2017

8

“A strong finish to 2017 resulted in another record quarter for revenue and profit”

5

Q4 2017 Key Report Highlights


EBITDA

GBP 73.8 m(+90%)

Gross winnings revenue

GBP 238.0 m(+56%)

Earnings per share

GBP 0.223(+73%)

Active customers

1,329,124 (+16%)

9

Free Cash Flow

GBP 59.3 m(+142%)

Gross winnings revenue


76.5 76.1 122.4 153.277.1 80.5

126.6166.6

80.4 86.1

142.3

193.6

78.0 111.4

152.8

238.0

2012 2013 2014 2015 2016 2017

Q1

Q2

Q3

Q4

GBPm

226.7268.0

312.0354.1

544.1

751.4

6

Gross winnings revenue from mobile


0

20

40

60

80

100

120

140

160

180

Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4 Q12016

Q2 Q3 Q4 Q12017

Q2 Q3 Q4

+55% GBPm

Q4 2017 P&L FX impact v Q4 2016


5.4

SEK 11.04311.236 1.7%NOK 10.83710.40

9-4.1%

EUR 1.1271.152 2.2%DKK 8.3898.568 2.1%

Q4 2017Q4 2016Avg rate Movement

GBPmGWR increase 2.1CoS / Opex increase -1.3FX loss on operating items -0.4EBITDA FX impact Q4 2017 0.4FX loss on loan repayment -0.8Profit before tax impact -0.4

AUD 1.7271.657 -4.2%

Weighted average movement in FX rates: approx. 1%

7

Geographic balance– Key Report Highlights Q4 2017


Nordics

Western Europe

+23% +24%

+86% +83%

GWR as reported in GBP

GWR in constant currency

13

+24%

+60%

Organic GWR in constant currency

Other Costs analysisExcl. Non-recurring items


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

14

GBPm2013

FY2014

FY2015

FY2016

FY2017

FY2017

Q4

Reported Other Costs 52.3 47.9 43.1 69.4 109.1 34.7

Depreciation & Amortisation -18.9 -16.8 -13.0 -23.8 -42.6 -15.8

FX loss/gain on Opex -0.6 -1.8 -0.7 -0.6 -1.5 -0.4

Other Costs post D&A and FX 32.8 29.3 29.4 45.0 65.0 18.5

9%

8

EBITDA – Excl 2014 Kambi one-off item


21.3 14.4 27.6 29.414.0 19.0

21.1 30.521.7 17.4

33.146.6

18.4 26.2

38.9

73.8

2012 2013 2014 2015 2016 2017

GBPm

Q1

Q2

Q3

Q4

52.563.4

75.5 77.0

120.7

180.3

0.044 0.087 0.0720.059

0.059 0.0900.057

0.0910.131

0.084

0.129

0.223

0.000.050.100.150.200.250.300.350.400.450.500.55

2012 2013 2014 2015 2016 2017

Q3

Q4

EPS development – Excl 2014 one-off items

Q1

Q2

GBP

0.244

0.366


0.516

9

GBP 0.551 (0.310) per share/SDR equivalent to SEK 6.16 +78%

• The Board has reviewed the projected cash requirements for 2018

• Proposing for this year to increase the dividend above 50 per cent of free cash

• This is in line with the dividend policy to distribute surplus cash

17

Proposed cash dividend


Business overview


10


32Red Q4 highlights

• All-time high in revenue and profit• GWR contribution: GBP 18.8m• Underlying EBITDA contribution: GBP 3.2m• Record number of active depositing players• Move of 32Red employees to Kindred Gibraltar

office scheduled for March 2018• Preparation for the migration to the Kindred

platform has started

0

200

400

600

800

1,000

1,200

1,400

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 Q4

Active customers


Thousands

2011 2012 2013 2014 2015 2016 2017

ATH

11

Sports betting gross marginCombined


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

10%11%12%

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 YRQ2 Q3 Q4

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

24 21 22 24 22 23 21 2130

22 23 23 23 23 20 23 2321

2 3 2 22 2 2 2

2

48 50 51 48 49 51 51 5145

4 3 2 3 4 4 3 3 2

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

43 44 42 45 44 45 41 40 35

9 10 9 9 8 77 6

7

45 44 47 44 46 46 50 52 55

3 2 2 2 2 2 2 2 3

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42015 20152016 20162017 2017

12


Netherlands update

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

– Online gambling reform will be continued

• Voting in the Senate anticipated for Q2 2018• Secondary legislation yet to be published

and consulted on• Regulator counting on market opening in Q2 2019


SOCIALLY RESPONSIBLE

OPERATOR

13

• A cutting edge UK racing client for mobile and desktop based on best practices

• Launching in Australia later this year


New racing platform


Launched in Romania in February

14

• Strong finish to 2017• ATH for all metrics• GWR + 56%• EBITDA +90%• EPS +73%• FCF +142%• Shows how adaptive

the business is


Summary Q4 2017


15

Contact

Investor RelationsInga Lundberg

+44 788 799 6116

[email protected]

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

Calendar

henrik tjärnström ceo - kindred group › globalassets › ... · 3 kindred’s share of the...

Documents