Kindred Group has released its full-year financial report for January to December of 2023 revealing total revenues of £1.21 billion (€1.41 billion) up by 13% year-on-year.
The report also reveals that gross winnings revenue in Q4 of 2023 grew by 2% to £301.6 million (€353.8 million) while overall revenues for the quarter also increased by 2% to £312.9 million (€367.1 million).
Kindred Q4 2023 Highlights
- Total revenue — £312.9 million (€367.1 million), up by 2%
- Gross winnings revenue (B2C) — £301.6 million (€353.8 million), up by 2%
- Underlying EBITDA — £56.8 million (€66.6 million), up by 45%
- Loss before tax — £19.1 million (€21.9 million) resulting in profit of £51.9 million (€60.9 million)
- Loss after tax was — £18.7 million (€21.9 million) resulting in profit of £50.0 million (€58.6 million).
- Earnings per share — £-0.09
- Free cash flow amounted to £46.8 million (€54.8 million)
- Number of active customers — 1,686,662, down by 8% year-on-year
Full Year Highlights
- Total revenue — £1.21 billion (€1.41 billion) up by 13% year-on-year
- Gross winnings revenue (B2C) — £1.17 billion (€1.37 billion), up by 12%
- Underlying EBITDA — £204.5 million (€239.8 million), up by 58%
- Profit before tax — £59.5 million (€69.8 million)
- Profit after tax — £47.2 million (€55.3 million)
- Earnings per share — £0.22
- 3,833,000 shares/SDRs were purchased, with a total value of SEK 443.7 million, or £34.2 million.
CEO Nils Andén commented:
“The final quarter of 2023 saw sustained above-market performance in the Netherlands, UK, and Romania, which combined with continued growth in our B2B segment (Relax Gaming) generated total revenue of GBP 312.9 million and underlying EBITDA of GBP 56.8 million for the period, an increase of 45 per cent compared to the same period last year.
During 2023, we provided guidance of GBP 200 million in underlying EBITDA, and I am very pleased that we have delivered on that target. Our performance demonstrates that Kindred is able to grow profitably within highly regulated markets. During 2023, 82 per cent of Gross winnings revenue was generated from locally regulated markets.”
The casino & games segment continues to grow well, contributing 57 per cent of Gross winnings revenue during the quarter – up 7 per cent versus the same period last year. The strong performance is testament to our strategic focus on enhancing the customer offering through exclusive games, improved supplier partnerships, and personalising the casino & games experience. As previously mentioned, accelerating growth across the segment within multi-product markets will continue to be a major delivery area during 2024.
Relax Gaming continue to perform well with total revenue for the quarter increasing 33 per cent versus the same period last year. The underlying EBITDA contribution was also up 72 per cent, demonstrating the scalability of the Relax business.”
Following the cost optimisation initiatives announced at the end of 2023, we continue to reallocate resources and marketing investments into areas that will deliver improved growth. Specifically, this includes increasing focus on the profitable casino segment and concentrating our marketing efforts within markets where we see significant opportunity to outgrow the market.
I remain confident that Kindred can deliver above-market growth across our portfolio during 2024. We see robust performance in select core markets, and I expect this momentum to continue going forward.”
Kindred also announced that interim CEO Andén has now been appointed as permanent CEO.
Takeover by FDJ
French lottery operator, La Française des Jeux (FDJ), announced its intention to propose a public cash offer for online gambling company Kindred in a deal worth SEK27.96 billion (£2.10 billion/€2.45 billion/$2.67 billion).
The deal will see FDJ pay a 24.4% premium over the closing price of SEK 104.50 on Nasdaq Stockholm on 19 January 2024, the last trading day before the offer’s announcement.
The offer acceptance period is expected to start on 20th February 2024 and conclude on 19th November 2024.
Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.