Date: 18.10.2024

by Sebastian Warowny

Last update: 18.10.2024 10:31

Kindred Group Reports Strong Q3 Growth Amid FDJ Acquisition

Kindred Group has announced a solid financial performance in the third quarter of 2024, coinciding with its ongoing merger with French national lottery operator La Française des Jeux (FDJ). The company will publish its full report on October 25.

Kindred Shows Solid Growth in Q3 2024 as Part of FDJ Merger

Kindred Group has published its unaudited total revenue for Q3 ahead of its full report scheduled for October 25. FDJ acquired Kindred by purchasing all outstanding shares, creating one of Europe’s largest gambling groups.

Kindred reported a total revenue of GBP 294.5 million ($382.5 million) for the third quarter, reflecting robust performance across its B2B and B2C operations. The company highlighted that this period showcased continued solid growth due to its diversified market presence.

The gross winnings revenue for Q3 reached GBP 283.1 million ($367.7 million). Notably, 83% of these gross winnings originated from locally regulated markets.

These unaudited figures have been shared with FDJ, which plans to release its own Q3 and year-to-date financial results after market closure on October 17. FDJ’s report will include combined figures that encompass Kindred’s performance during the quarter.

Results in Line with Forecasts

FDJ has estimated Kindred’s revenue based on the operational scope that will be retained post-merger. Announced on January 22, 2024, this scope involves exiting markets like Norway and other .com sites unless a clear path toward obtaining local licenses is established.

Kindred concluded that its estimated revenue and the proportion from locally regulated markets are consistent with previous forecasts. The company remains on track to meet its full-year EBITDA guidance, signaling financial stability amid the merger process.

The acquisition by FDJ followed a complex regulatory process, with initial concerns about potential impacts on market competition. Regulators approved the deal on the condition that Kindred’s gaming operations and FDJ’s lottery activities remain separate entities.

Changes in Kindred’s Board of Directors

Following the merger, Kindred announced significant changes to its board. Departing members include James H. Gemmel, Cédric Boireau, Andrew McCue, Jonas Jansson, and Kenneth Shea. New appointees are Pascal Chaffard, Edeline Minaire, and Célia Vérot.

Meanwhile, FDJ remains unconcerned about speculated tax increases in France. Although reports suggested that the 2025 Social Security Financing Bill might include changes to gambling taxation, these were not implemented, alleviating industry apprehensions.