Date: 07.02.2024

by Antoni Majewski

Kindred Group Reports Solid Performance in 2023 Amidst Strategic Shifts

Kindred Group plc has announced its full-year results for January to December 2023, showcasing a resilient performance across select markets, leading to a commendable delivery on its annual targets. Despite the challenges posed by the closure of its North American operations, the company reported a total revenue increase and substantial growth in underlying EBITDA.

Key Highlights of 2023 Performance

  • Total revenue saw a 13% increase year-over-year, reaching GBP 1,210.5 million.
  • Gross winnings revenue (B2C) grew by 12%, amounting to GBP 1,171.9 million.
  • Underlying EBITDA experienced a significant 58% increase to GBP 204.5 million.
  • Profit before tax stood at GBP 59.5 million, with an after-tax profit of GBP 47.2 million.
  • Earnings per share were reported at GBP 0.22.

Strategic Focus and Market Performance

Kindred’s strategic focus on regulated markets paid off, with 82% of its Gross winnings revenue generated from locally regulated markets. The casino & games segment, in particular, showed robust growth, contributing 57% of the Gross winnings revenue for the quarter, marking a 7% increase compared to the same period last year.

The company’s B2B segment, Relax Gaming, also reported impressive growth, with total revenue for the quarter up by 33% year-over-year. The scalability of Relax Gaming’s business model was evident in the 72% increase in its underlying EBITDA contribution.

Cost Optimisation and Market Focus

Following cost optimisation initiatives announced at the end of 2023, Kindred has been realigning resources and marketing investments towards more profitable segments and markets with significant growth potential. This strategic shift, particularly towards the casino segment, is expected to drive improved growth and deliver above-market performance across Kindred’s portfolio in 2024.

Trading Update for Early 2024

In the initial period of 2024, up to and including 4 February, Kindred reported an average daily Gross winnings revenue of GBP 3.21 million, a slight 3% decrease from the daily average for the first quarter of 2023. The sports betting margin after free bets was reported at 9.5%, slightly lower than the Group’s long-term average and the margin for the same period last year.

Looking Ahead

Kindred Group’s CEO, Nils Andén, expressed confidence in the company’s ability to deliver above-market growth across its portfolio in 2024, citing robust performance in core markets and the momentum expected to continue. The company’s strategic focus on enhancing customer offerings, particularly in the casino & games segment, and realigning resources towards growth areas, positions Kindred well for future success.

The absence of a proposed dividend for the financial year 2023, in light of the public cash offer from La Française des Jeux, underscores the transitional phase Kindred is undergoing, with a clear focus on sustainable growth and operational efficiency.