'World Cup own goal': DB downgrades Kindred post profit warning

Kindred

17/01/2023 14:57

** Deutsche Bank downgrades Kindred  KINDsdb.ST  to "hold"
from "buy" after the Stockholm-listed online gambling group's
profit warning last week
    ** Kindred said in a trading update on Thursday its Q4
revenue and EBITDA wouldn't meet expectations after the World
Cup failed to offset the impact of reduced fixtures elsewhere
    ** DB notes that despite the one-off nature of the Q4 hit,
the company's 2023 EBITDA guidance of at least GBP 200 mln ($246
mln) is also below consensus and the broker's estimates
    ** A trading update from London-listed peer 888 Holdings
 888.L  on Friday showed World Cup results in line with
expectations, suggesting Kindred's challenges "may have been
more self inflicted", says DB
    ** It adds reaching 2025 targets for revenue of GBP 1.6 bln
and EBITDA margin of at least a 21% now looks like a stretch for
Kindred
    ** Out of eight analysts that cover Kindred, four rate the
stock "strong buy"/"buy", three "hold" and one "sell"
($1 = 0.8145 pounds)
 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))