Fdj United · EURONEXT:FDJU
Fdj United — Kindred Group — Q1 2023 Earnings Presentation
25 slides from Fdj United's earnings presentation, Apr 26, 2023
Slide 1: Q1 2023 Results, Henrik Tjärnström, CEO
Henrik Tjärnström Q1 2023 | 26 April 2023 CEO
Slide 2: Outline
Outline Q1 2023 highlights Business overview – Q1 performance – Product segment update – Regional update – North America – Netherlands – Relax – Sustainability Summary © Kindred Group plc 2023 2
Slide 3: Kindred's financial outlook is strong and will drive significant shareholder value
Kindred’s financial outlook is strong and will drive significant shareholder value Solid progress across the key value drivers for the coming years * * Ambition is to become a top 10 operator in selected states in North America Performance and results in Q1 2023 remain on path towards 2023 guidance
Slide 4: Encouraging improvement in both revenue and profitability
Encouraging improvement in both revenue and profitability Growth and accelerated cost optimisation remain in focus to drive further scalability Locally Underlying Free Active Net Revenue regulated EBITDA cash flow customers cash share of GWR GBP 306.4m GBP 240.6m GBP 49.4m GBP 29.0m 1,623,568 GBP 43
Slide 5: Q1 delivered 24% y-o-y growth despite headwinds
Q1 delivered 24% y-o-y growth despite headwinds Excl. Netherlands, revenue increased by 1% compared to Q1 2022 Revenue (B2C & B2B) GBPm 1,259.6 1,130.2 244.9 1,068.7 907.6 912.8 364.7 305.5 298.4 751.4 250.1 236.2 +24% 238.0 280.7 277.8 * 544.1 230.7 226.0 363.7 Q4 152.8 354.1 193.6 Q3 226.2 235.1 2
Slide 6: Continued focus on scalability
Continued focus on scalability Cost actions taken during Q1 will have increased impact during coming quarters. M&A impacts historical comparisons Expenses as % of revenue 25.2% FY FY FY Q1 22.8% 22.8% 2020 2021 2022 2023 20.8% 16.0% 15.8% 15.9% 14.8% 14.5% 13.2% 9.7% 9.3% 8.1% 7.6% 5.6% 5.5% 4.4% 4.
Slide 7: Opex expected to flatten out
Opex expected to flatten out Headcount growth outside KSP is epected to be minimal in coming quarters at the same time as actions taken during Q1 will have an increased impact Total opex* (GBPm) 67.8 ~64 ~65 58.3 Opex* Non- Adjusted General salary FTE growth Other Adjusted Non-recurring Opex* Q4 202
Slide 8: Clear underlying EBITDA improvement in Q1
Clear underlying EBITDA improvement in Q1 Excl. North America, underlying EBITDA reached GBP 54.9m, a margin of 18% Underlying EBITDA* (GBPm) 332.1 288.2 27.6 84.8 204.9 118.2 186.5 58.2 113.7 Q4 124.3 74.9 128.0 129.2 56.7 75.8 +102% 81.5 38.2 31.1 39.1 Q3 47.8 35.7 27.5 34.6 42.3 49.9 40.3 Q2 21.0
Slide 9: Q1 2023 P&L FX impact vs Q1 2022
Q1 2023 P&L FX impact vs Q1 2022 Avg rate Q1 2022 Q1 2023 Movement AUD 1.852 1.778 4.0% DKK 8.896 8.428 5.3% Weighted average movement of EUR 1.196 1.132 5.4% 5.4 FX rates on GWR had a positive NOK 11.866 12.446 -4.9% impact of approx. 3 per cent SEK 12.531 12.686 -1.2% USD 1.341 1.215 9.4% GBPm Rev
Slide 10: Business overview
Business overview © Kindred Group plc 2023 10
Slide 11: Share of locally regulated GWR at 81% in Q1
Share of locally regulated GWR at 81% in Q1 Strong GWR growth in locally Transition towards locally regulated markets continues regulated markets (GBPm) – Underlying EBITDA margin has bottomed out and started to improve Growth FY19-LTM 1,097.8 GBPm Other Betting duties markets +12% 90% 300 912.8 (LT
Slide 12: Continued solid activity following the World Cup
Continued solid activity following the World Cup • Number of active Active customers (‘000) ARPU (GBP) customers amounted to 2,000 800 approx. 1.62 million, an 1,800 720 18% increase compared to Q1 2022 1,600 640 1,400 560 • Excluding the Netherlands, the number of active 1,200 480 customers increas
Slide 13: Product segment update
Q1 2023 Product segment update (Year-on-year) GWR by product segment Q1 2023 Sports betting Poker, 3% Other, 2% • GWR increased by 8% compared to the same quarter last year. Excl. the Netherlands GWR declined by 8% vs. comparative period Sports • Strong performance in several core markets was offset
Slide 14: Sports betting margin ahead of long-term average
Sports betting margin ahead of long-term average Sports betting margin after free bets • The sports betting margin for Q1 2023 was 9.9% after free bets vs. 10.2% during the same period last year Quarterly Last 12 months average 10.7% 10.7% • The weighted long-term (since Q2 10.0% 10.2% 9.9% 9.9% 202
Slide 15: Regional update
Q1 2023 Regional update (Year-on-year) GWR by region Q1 2023 Other, 5% Western Europe CES • GWR increased 37% against Q1 2022 11% 26% Nordics • Excl. Netherlands, the GWR declined by 8% impacted by headwinds in Belgium and the closure of Germany during H2 2022 • UK reported 7% growth despite stricte
Slide 16: Encouraging signs in North America
Encouraging signs in North America North America operations Q1 2023 Our proprietary platform is ready to go GBPm GWR 8.0 • GBP 8.0m in GWR Q1 2023, an 18% reported y-o-y growth CoS -7.4 (approx. 8% growth in constant currency) Marketing -3.2 • The negative underlying EBITDA contribution reduced Admi
Slide 17: Continued strong performance in the Netherlands
Continued strong performance in the Netherlands • Continued strong customer activity with number of active customers reaching approx. 205k during Q1 2023 Daily average GWR development (GBP ‘000) • The GWR reached approx. GBP 57.3m, a sequential increase of 8% § • Netherland’s gross contribution % wa
Slide 18: Relax total revenue grew 89% in Q1 while EBITDA grew 200%
Relax total revenue grew 89% in Q1 while the EBITDA grew 200% • Relax total Q1 revenue amounted to GBP 12.3m, Restated Relax total revenue development (GBPm)* an 89% increase compared to Q1 2022 (as adjusted) 12.3 • The Q1 B2B revenue from Relax amounted 11.3 to GBP 9.1m 9.6 B2B revenue • Relax gros
Slide 19: Dedicated focus on our Journey towards Zero
Dedicated focus on our Journey towards Zero • Data from Q1 2023 Our Journey towards Zero ‒ Share of GWR from high-risk players: 3.0% % of GWR Social Low Risk Medium Risk High Risk ‒ Improvement effect after interventions: 83.0% 100% • The decrease in Q1 was driven by localiced 90% strategies to impr
Slide 20: Summary
Summary © Kindred Group plc 2023 20
Slide 21: Strong start of the quarter
Strong start of the quarter Trading update for the first 23 days of Q2 2023 The daily average GWR (GBPm) • Strong start of the quarter with high activity across markets 92 92 90 23 # of days • Q2 2022 comparatives distorted by the temporary closure of services to Dutch residents • The average daily
Slide 22: Kindred's financial outlook is strong and will drive significant shareholder value
Kindred’s financial outlook is strong and will drive significant shareholder value Solid progress across the key value drivers for the coming years * * Ambition is to become a top 10 operator in selected states in North America Material financial benefit Solid growth across all On track to become th
Slide 23: © Kindred Group plc 2023
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Slide 24: Contact Calendar
Contact Calendar 25 July 2023 Investor Relations Q2 2023 will be published at 7.30 CEST Patrick Kortman 26 October 2023 +46 723 877 438 Q3 2023 will be published at 7.30 CEST ir@kindredgroup.com Linda Lyth +46 767 681 337 ir@kindredgroup.com © Kindred Group plc 2023 24
Slide 25: Kindred
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