Kindred’s Strategic Shifts and Financial Performance: A Closer Look at Q3 Results
As the digital gambling industry continues to evolve, Kindred Group reveals its Q3 figures and strategic decisions. The results underscore a period of significant transformation. With an eye on long-term sustainability, Kindred’s move towards regulated markets and the impacts of its strategic reviews are worth noting.
- Kindred’s revenue increased by 3.7% year-on-year in Q3, ahead of its integration into the FDJ group.
- A strategic shift towards regulated markets may impact its EBITDA target for 2024, but locally licensed market revenue grew by 4%.
- Both B2C and B2B divisions grew, with a notable rise in active customers and sportsbook users.
- North America’s exit impacted revenue comparisons, with a potential 6% growth when excluding this market.
- Strategic review costs and the FDJ deal significantly affected profitability, yet underlying EBITDA and year-to-date net profit showed positive trends.
- Kindred is set to de-list from Nasdaq Stockholm following FDJ’s acquisition.
As the curtains close on Q3 for Kindred Group, the online casino and gambling company presents a picture of growth amidst transformation. Reporting a 3.7% rise in revenue year-on-year, Kindred’s evolution comes amid its forthcoming merger with France’s FDJ group—a move that sets a new trajectory for the company.
Regulated Markets: The New Focus for Kindred Group
A strategic pivot led by Kindred’s CEO, Andén, sees the company sharpening its focus on regulated and soon-to-be-regulated markets. Aiming for ethical operation and sustainable growth, Kindred now boasts 83% of its gross winnings revenue coming from such markets. Though integral to Kindred’s vision, the strategy carries implications for its ambitious £250 million EBITDA target for 2024 due to potential exits from dotcom markets like Norway, which lack a pathway to regulation.
Q3 Breakdown: A Mixed Bag with Positive Signs
- Revenue Gains Across Divisions: Kindred’s B2C operations, including its ventures in Europe and Australia, saw a 3.1% revenue increase, led by casino and gaming. B2B operations, spearheaded by Relax Gaming, surged by 23.9%, reflecting the success of Kindred’s diversified portfolio.
- Customer Engagement: There’s notable progress in customer engagement, with an 8.8% increase in active users, especially in sports betting, showcasing a rising appetite for online betting.
- North America’s Departure: While streamlining Kindred’s focus, the withdrawal from North America had a dent in revenue comparisons. However, excluding this market, Q3 would have seen approximately a 6% rise in revenue.
Financial Implications for Kindred Group
The strategic recalibration and its associated costs, including those from the FDJ acquisition, have left their mark on Kindred’s profitability. Operational profits saw a dramatic dip primarily due to the £30.9 million strategic review costs. Similarly, despite registering a net profit and a significant rise in underlying EBITDA, the figures reflect the financial complexities of Kindred’s current transitional phase.
Looking Ahead: De-Listing and a New Chapter
As Kindred prepares to bid farewell to its public trading status on Nasdaq Stockholm, CEO Andén takes a moment to reflect on the journey and the contributions of investors and the Kindred team. This transition marks not an end but the beginning of a new chapter for Kindred, now under the auspices of FDJ. The focus on competitive, digital, and sustainable online gambling continues to be the north star, guiding Kindred’s future endeavours.
The strategic shifts, financial performances, and prospects of Kindred indicate a company at an inflexion point. Balancing growth with responsible regulation and navigating the complex financial implications of its strategic decisions, Kindred is charting a course towards a sustainable future in the digital gambling industry.
Kindred Group owns many online casinos, including 32Red Casino and Unibet Casino.
Peter is our Editor-in-Chief at Gamblingauthority. He has more than eigth years of experience from the iGaming industry and is a valuable resource for everything related to online casinos.
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