Put The Champagne On Ice But Don’t Pour As Kindred Group Release Q1
In what’s promising to be a transformational year, Swedish-origin Kindred Group–currently the target of a €2.5 billion (£2.14bn/US$2.68bn) takeover bid by French gaming monopoly FDJ–has rolled out a flatline Q1 Trading Update that could do with a healthy dose of gallic elan and savoir-faire.
So don’t pour out the champagne just yet.
While not quite moribund, the financials show a pretty much so-so performance, with only a decent three percent year-on-year increase in Active Customers, now numbered at over 1.66 million players, to cheer.
Total group revenue for Q1, ending March 31, was £307.7 million (US$385.04m), consistent with the same period in 2023.
With Kindred pulling out of the US market, underlying EBITDA rose by 20 percent to £59.3 million (US$74.2m) during the quarter, said the company, “underscoring operational efficiency and strategic initiatives”.
Profit before tax increased to £39.8 million (US$49.79m) and profit after tax was registered as £31.4 million (US$39.29m).
Stockholm-listed Kindred, founded in 1997, owns nine major online brands, among them 32Red and Unibet.
Kindred Spirits
“We have had a solid start to 2024 with the underlying business operations performing well and operational initiatives moving forward according to plan,” said CEO Nils Andén (pictured, right).
“The headcount reduction plans announced at the end of last year are progressing as intended, and the North America exit is set to conclude towards the end of the second quarter this year.
“Our growth plan that we launched during the fourth quarter last year, focusing on Europe and Australia, continues at pace with dedicated strategic growth projects across locally regulated markets.
“During the quarter, we launched the Kindred Sportsbook Platform (KSP) in a test market, and we are very pleased with the progress to date.
“KSP remains one of our most important strategic projects and will give us the flexibility and differentiation needed to improve growth in locally regulated markets.”
Bigger news by far is Kindred’s proposed sale to French national lottery operator and dominant market force FDJ, Française des Jeux.
The infusion of new blood and fresh finance certainly captures the spirit of an upcoming spectacular Summer of world sports and the Kindred spirits of the company’s founding fathers.
