Kindred reports decline in profits for 2023 ahead of vote on FDJ takeover
The online gambling giant’s revenue rose to £1.2bn in 2023, but profits slipped to £59.5m.
Sweden.- Kindred Group has reported full-year results for 2023. It vowed to continue with its cost controls as it reported a drop in profits from £126m in 2022 to £59.5m. Revenue for the year was up 13 per cent at £1.2bn.
Kindred said its performance had been above market expectations in the UK, the Netherlands, and Romania. However, revenue in the last quarter was impacted by regulatory issues in Belgium and in Norway, where the operator has had a long legal battle with the national regulator Lottstift due to its insistence in continuing to operate in what remains a state-controlled monopoly gambling market.
The number of active customers in Q4 was down 8 per cent year-on-year at 1,686,662, although Kindred put this down to the impact of the 2022 World Cup in Qatar. The operator achieved its financial target of £200m in underlying EBITDA for the full year. The company’s tax burden rose from £272m to £318m due to its increased focus on regulated markets.
CEO Nils Andén said: “Looking back at an eventful and busy year, I can conclude that Kindred is establishing a stronger and more robust foothold in core markets across Europe. Our performance demonstrates that Kindred is able to grow profitably within highly regulated markets.”
Andén said Kindred would focus on its “dedicated growth plan for markets in Europe and Australia”, as makes a “controlled exit from North America” and reduces its headcount.
FDJ acquisition offer
Kindred’s board has recommended that shareholders vote to accept a €2.6bn cash offer from La Française des Jeux (FDJ). The acquisition would create Europe’s second-largest gaming group.
It said: “FDJ does not intend to materially alter the operations of Kindred following the implementation of the offer, other than the exit from the Norwegian market and those other non-regulated markets with no ongoing path to regulation. This is in line with Kindred’s ambition to be a locally regulated operator.”
