Kindred Group records Q3 revenue increase in preparation for FDJ takeover
Swedish operator reports 3.7% year-on-year revenue increase to £294.5m as it prepares to exit markets lacking “a clear path to local regulation in the near future”
Kindred Group has recorded revenue of £294.5m for the third quarter of 2024, representing a 3.7% year-on-year (YoY) increase when compared to the corresponding period in 2023.
Gross winnings revenue from B2C operations made up the majority of that total, accounting for £283.1m – up 3.1% YoY.
Revenue from the company’s B2B arm, Relax Gaming, totalled £11.4m, up from £9.2m in Q3 2023.
Western Europe continued to be the company’s most profitable region, bringing in total revenue of £182.5m.
The Nordics added £65.5m, Central, Eastern and Southern Europe contributed £29.1m, while revenue from other regions came to £6m.
Sports betting revenue increased 11.3% YoY, up from £94.5m to £105.2m, making up 37% of Kindred’s B2C total for the third quarter.
The vast majority of that revenue (58%) was derived from casino and games, which decreased by £1.8m from £166m in Q3 2023 to £164.2m in Q3 2024.
Poker revenue came to £8.9m, up from £8.1m, while other products added a further £4.8m, up 2% YoY.
Kindred accumulated £126.7m worth of sales costs, £72.2m of administrative expenses, personnel restructuring costs of £3.2m and £30.9m costs incurred from the strategic review that led to the company’s sale to La Française des Jeux (FDJ) earlier this month.
This led to the firm recording a pre-tax profit of £12.9m for Q4, down 54.3% YoY. Total profit for the period came to £9.6m, down from the £12.6m recorded for Q3 a year prior.
EBITDA decreased 13% YoY from £33.9m to £29.5m, while underlying EBITDA increased 48.8% YoY to £63.4m.
The company enjoyed a 9% YoY increase in the number of active customers for the quarter, up from 1.5 million to 1.7 million, aided by a summer of successful sporting events including Euro 2024 and the Paris Olympic Games.
Kindred CEO Nils Andén noted a siginficant dip in sportsbook activity after the summer’s events and before major European leagues resumed their competitions in mid-August.
In terms of year to date, from January to September 2024, Kindred reported revenue of £929.8m, up 3.6% YoY from £897.6m.
B2C revenue for the first seven months of the year reached £897.9m, up 3% YoY, with B2B revenue adding £31.9m.
Post-tax profit for the reporting period came in at £85.5m, up 29.7% YoY, while EBITDA for January to September amounted to £161.4m. Underlying EBITDA rose 32.9% YoY from £147.7m to £196.3m.
In addition to completing its sale to FDJ for €2.5bn (£2.08bn), Kindred has said it plans to exit markets which “do not have a clear path to local regulation in the near future”, citing Norway as an example.
Kindred noted this decision will affect the group’s ability to “fully” reach its underlying EBITDA target of £250m for the year.
Highlighting the impending FDJ takeover, Andén paid tribute to the “significant contribution” Kindred has made to the industry.
He said: “With the public offer by FDJ now completed, and as we transition into the next exciting phase in Kindred’s history, I would like to take this opportunity to thank investors in Kindred, both past and present.
“Twenty years as a public listed company on Nasdaq Stockholm comes to an end. Together, we have made a significant contribution to the creation of a competitive, digital and sustainable online gambling industry.
“While there is still much work to be done, I am confident that we are on the right path to delivering a compelling experience for customers, in a safe and secure environment, that ultimately delivers positive outcomes to all stakeholders,” the CEO added.