Kindred suspends dividend payouts to protect company’s liquidity
Stockholm-listed Kindred Group Plc has reported a strong start to 2020 trading as part of a corporate update on COVID-19 developments but has been forced to suspend dividend payments as a result of the outbreak.
Despite facing unprecedented circumstances, Kindred has forecasted group gross win revenues within the £247-252 million range, maintaining growth against Q1 2019’s £225 million.
This is despite the mass sports cancellations from 16 March onwards, which has inevitably drained the company’s sportsbook turnover capacity. Disruption across this period has seen Kindred’s daily average gross win revenue decrease by 10% to £2.2 million.
Navigating uncertain times, Kindred underlined that its priority remains ensuring the capitalisation and liquidity of the company. As a result, it has informed investors that the previously approved 2019 dividends will be suspended, as a recommended AGM action.
Henrik Tjärnström, CEO, explained: “While the current situation presents several challenges, I remain very positive about Kindred’s future outlook. Kindred will continue to benefit from a wide geographical reach and a broad product mix as well as a business model which has been resilient during previous times of economic downturns.
“I also believe that the social and behavioural changes that are already happening will accelerate the migration from offline to online, which will benefit digital operators like Kindred. Our focus on player safety and care for our customers will naturally continue with the same dedication.”
Source: SBC News
