Kindred as an investment

Six reasons to invest in the Kindred share

1. A large and growing underlying market

Driven by an accelerating shift from offline to online, Gross winnings revenue within the non-cyclical global online gambling market is estimated to show a compound annual growth rate (CAGR) of 10.3 per cent between 2021 and 2026. The global online gambling market is estimated at GBP 66 billion in 2021, corresponding to 31.7 per cent of the total global gambling market (estimated at GBP 208 billion).

2. A leading online gambling operator with a diversified footprint

Kindred is the world’s fourth largest online gambling operator in Gross winnings revenue, with 31.9 million registered customers. With technology as a common denominator, our revenue is diversified from a brand, product and geographical perspective, which underpins stability and enables scalability.

3. A solid foundation for continued long-term profitable growth

Kindred has a strong record of revenue growth with a CAGR of 23 per cent between 2011 and 2021 and operational efficiency. Through our data-driven approach and fully scalable platform, we build sustainable and long-lasting relationships. By utilising our strong brands and attractive products across our markets, we continue to grow our customer database and gain market share.

4. Well positioned to grow North America into one of our largest markets

North America is quickly becoming the world’s largest regulated online gambling market, with an estimated market size of USD 35 billion by 2026. At the end of 2021, Kindred had conditional access to 11 of the top 30 states in the US in terms of population, and will expand into Canada with a direct market access licence in Ontario expected in Q2 2022. Through our selective state-by-state approach, local expertise and solid experience, we will continue to grow our multi-brand offer in the region with the aim of growing North America into one of our largest markets in the next few years.

5. A determined focus on sustainability

Kindred’s purpose is to transform gambling by being a trusted source of entertainment that contributes positively to society. One of our priority areas is responsible gambling, and through our sector-leading approach we aim to ensure we earn no revenue from harmful gambling by the end of 2023. Our efforts provide long-term profit support, reduce volatility and uncertainty, and strengthen our ability to attract and retain the best talent.

6. A profitable business model with strong underlying cash-flow generation

Kindred has a record of profitability and strong cash flow. The solid balance sheet and cash-flow generation allow for continued investments in both organic growth and selective acquisitions. The total pay-out ratio of dividends and share purchases should, over time, equal about 75 per cent of free cash flow*.

*    Free cash flow is defined as cash flow from operations excluding movements in customer balances less cash flow from investment activities (including acquisitions) and payments for lease liabilities