Slide 1: Q3 2017 Results and Outline
Henrik Tjärnström CEO Q3 2017 27 October 2017 • Financial results Outline • Business overview • Summary © Kindred Group plc 2017 2 1
Slide 2: Financial results
© Kindred Group plc 2017 3 Financial results © Kindred Group plc 2017 4 2
Slide 3: Q3 2017 Key Report Highlights
Q3 2017 “ © Kindred Group plc 2017 A record quarter for revenue and profit, supported by the acquisition of 32Red” 5 Q3 2017 Key Report Highlights Gross Earnings Free Cash Active winnings EBITDA per share Flow customers revenue GBP 193.6m GBP 46.6m GBP 0.131 GBP 60.1m 1,219,761 (+36%) (+41%) (+44%)
Slide 4: Gross winnings revenue and mobile revenue
Gross winnings revenue GBPm 544.1 513.4 152.8 391.3 193.6 354.1 312.0 142.3 268.0 111.4 78.0 234.0 242.7 226.7 166.6 Q4 80.4 86.1 126.6 Q3 77.1 80.5 Q2 153.2 122.4 76.5 76.1 Q1 2012 2013 2014 2015 2016 2017 © Kindred Group plc 2017 7 Gross winnings revenue from mobile GBPm 160 +51% 140 120 100 80 60
Slide 5: Q3 2017 FX impact and geographic balance
Q3 2017 P&L FX impact v Q3 2016 Avg rate Q3 2016 Q3 2017 Movement SEK 11.194 10.648 4.9% NOK 10.934 10.416 4.7% Weighted average movement EUR 1.177 5.4 1.114 5.4% in FX rates: 4-5% DKK 8.760 8.287 5.4% AUD 1.732 1.658 4.3% GBPm GWR increase 8.6 CoS / Opex increase -5.2 FX loss on operating items -1.
Slide 6: Other costs analysis and EBITDA
Other Costs analysis Excl. Non-recurring items 2013 2014 2015 2016 2017 GBPm FY FY FY FY 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 Share
Slide 7: EPS development and Business overview
EPS development – Excl 2014 one-off items GBP 0.40 0.366 0.35 0.293 0.30 0.129 0.244 0.237 0.25 0.131 0.20 0.084 0.091 0.160 Q4 0.15 0.057 Q3 0.059 0.090 0.10 0.059 Q2 0.05 0.087 0.072 0.044 Q1 0.00 2012 2013 2014 2015 2016 2017 © Kindred Group plc 2017 13 Business overview © Kindred Group plc 2017
Slide 8: Active customers and sports betting gross margin
Active customers Thousands 1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0 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 2011 2012 2013 2014 2015 2016 2017 © Kindred Group plc 2017 15 Sports betting gross margin Combined Before free bets After free be
Slide 9: Product & geographic balance; Netherlands update
Product & geographic balance Gross winnings revenue over time By product, % By geography, % Other 3 4 3 2 3 4 4 3 3 Other 3 3 2 2 2 2 2 2 2 Western 42 44 44 Casino & 49 48 50 51 48 Europe 45 47 46 46 50 52 49 51 51 51 Games 2 CES 8 10 9 7 Poker 2 2 3 2 2 2 2 2 9 9 8 7 6 Live betting 23 22 23 23 23 2
Slide 10: 32Red casino Q3 highlights
32Red casino Q3 highlights • 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 Gross Underlying Active winnings EBITDA customers revenue GBP 18.6m GBP 3.7m 120,171 (GBP 23.3m since (GBP 4.
Slide 11: Update of migration projects; Livestream on Unibet.be
Update of migration projects 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 Migration to the group platform: • Focus is on delivering a brand new racing product for Unibet
Slide 12: Summary Q3 2017
Kindred Group wins Return on CX’ Gold Award at 2017 UK Customer • Recognised for our ground breaking data driven Experience Awards & 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
Slide 13: Q&A and Contact
Q&A © Kindred Group plc 2017 25 Contact Calender 14 Feb 2018 Investor Relations Q4 will be published at 7.30 CET Inga Lundberg 25 April 2018 +44 788 799 6116 Q1 will be published at 7.30 CET ir@kindredgroup.com 15 May 2018 AGM 25 July 2018 Q2 will be published at 7.30 CET 26 Oct 2018 Q3 will be publ