On Thursday, the company released an update for the fourth quarter of 2022, confirming it expects to see revenue of £305.0 million ($372.9 million).
Kindred’s Q4 Revenue Impacted by the World Cup
A year-over-year comparison reveals a solid growth of 24% when compared to the £224.9 million ($275 million) result reported for Q4, 2021. Comparison in constant currency represents 23% growth. Still, Kindred acknowledged that the Q4 2022 result was negatively impacted by multiple factors. In fact, the company said that the result fell behind the expectations for the period.
The company explained that the World Cup 2022, which was held in Qatar disrupted the usually packed sports calendar. According to Kindred, due to the World Cup taking place within the fourth quarter, there were 25% fewer soccer league fixtures. Although it was expected that the high interest in the World Cup will offset that result, the company explained that the positive effect wasn’t nearly enough to compensate for the missing 25% of events.
In light of the preliminary results, Kindred pointed out it intends to take prompt actions to counter any negative effects which can affect its business. The leading gaming operator said it plans to improve both its long-term and short-term profitability.
“As a result of the weaker than anticipated performance, immediate actions will be taken to improve profitability in the short- and medium-term,“
reads a statement released by Kindred Group
Revenue Impacted by Several Markets
Besides the impact of the World Cup, Kindred pointed out that several markets affected its performance during the fourth quarter, such as Belgium and Norway. In Norway, the company observed operational changes that had a negative impact on its revenue.
On the bright side, during the fourth quarter of 2022, Kindred reported 1.83 million active customers. This result marked a significant 25% increase when compared to the corresponding period in 2021. Still, Kindred acknowledged that the number of active users was boosted primarily because of different marketing efforts during and before the World Cup.
The latest trading update comes on the heels of a partnership between Kindred and Play’n GO. Only recently, the leading provider of online slots agreed to deliver popular titles for the Kindred-owned brand 32Red in the UK.