The group reported positive growth in 2023, with Kindred seeing an increase in both its B2C and B2B businesses. However, there were also challenges, notably Kindred’s decision to exit the North American market. Kindred anticipates completing this exit by the end of Q2 as part of its strategic review initiated in April of the previous year. As a result of the review, 300 jobs will be cut across the company, including in North America. The review may potentially involve a full or partial sale of Kindred, with French gaming company La Française des Jeux (FDJ) recently making an offer to acquire all outstanding shares of Kindred.
Kindred has recommended that its shareholders accept the offer, with the acceptance period starting around February 20th and ending on November 19th. With respect to the FDJ offer and Kindred’s performance in 2023, Nils Andén, who has been confirmed as the permanent CEO, expressed optimism.
Turning to the financial results, Kindred reported an increase in revenue for the full year of £1.21bn, driven by growth in the B2B activities and the Relax Gaming business in the B2C segment. Despite increased costs, the underlying profit before items affecting comparability was up by 93.0%, reaching £1409m. However, due to various expenses such as market closure costs, contract termination costs, impairment losses, and net finance expenses, the pre-tax profit decreased by 53.1% to £59.5m. Kindred’s net profit for the year amounted to £47.2m, reflecting a decline of 60.7% compared to 2022. EBITDA decreased by 18.6% to £152.6m, while underlying EBITDA increased by 58.3% to £204.5m.
In the fourth quarter of 2023, Kindred achieved a net loss primarily due to market closure costs, contract termination costs, and impairment expenses. The group’s revenue increased by 2.4% to £312.9m, with B2C accounting for £301.6m and B2B for £11.3m. Casino and games represented the highest proportion of Q4 revenue at 57.0%, followed by sports betting (38.0%), poker (3.0%), and other products (2.0%). Western Europe generated the majority of B2C revenue (62.0%), followed by the Nordics (24.0%), Central and Eastern Europe (10.0%), and other areas (4.0%). Despite a decrease in cost of sales, administrative costs rose by 4.3%, resulting in a pre-tax loss of £19.1m, compared to a profit of £51.9m in 2022. The net profit for the quarter was £18.7m, down from £50.0m in the previous year. EBITDA decreased to £20.0m, while underlying EBITDA increased by 45.3% to £56.8m.
Nils Andén remains optimistic about Kindred’s future, highlighting the cost-saving initiatives implemented in 2023 and Q4 that will contribute to the company’s long-term success. He expects Kindred to achieve above-market growth in its portfolio during 2024, building on the strong performance in core markets.
