Kindred Group has published its interim financial report for January through September 2024, showing both progress and ongoing challenges as the company navigates a strategic review linked to its transaction with La Française des Jeux (FDJ). The third quarter of 2024 saw Kindred’s total revenue reach £294.5 million (US$381.8 million/€351.8 million), reflecting a 4% increase from the previous year’s £283.9 million. In its B2C sector, gross winnings revenue also rose, marking a 3% growth to £283.1 million from £274.7 million in the same quarter last year.
A significant boost to EBITDA highlighted the quarter, with a 49% increase to £63.4 million, up from £42.6 million year-over-year, signalling both improved operational efficiency and growth in player engagement. However, Kindred’s profit before tax was impacted by expenses related to the strategic review of the FDJ transaction, totalling £30.9 million. This reduced profit before tax to £12.5 million, down from £15.1 million in the third quarter of 2023. Similarly, profit after tax also declined, ending at £9.6 million compared to £12.6 million last year, including a small loss from discontinued operations and £10 million in profit from continuing operations. Earnings per share closed at £0.04, a reduction from £0.06 in the previous year.
Over the nine-month period ending in September, Kindred reported a total revenue of £929.8 million, reflecting a 4% rise year-over-year. Gross winnings revenue in B2C climbed by 3% to reach £897.9 million. This period also saw a 33% growth in EBITDA, reaching £196.3 million compared to £147.7 million in the same period in 2023. Profit before tax was £107.9 million, an increase from £78.6 million the prior year, though this was heavily impacted by strategic review costs amounting to £34.4 million. Profit after tax for the period rose to £85.5 million, offsetting a £3.3 million loss from discontinued operations with £88.8 million in profit from continuing operations.
Kindred’s free cash flow over this period increased to £61.1 million from £56.5 million in the previous year, though quarterly free cash flow for Q3 dipped to -£4.2 million from £24.5 million. This variance is attributed to investments and strategic expenses related to the ongoing FDJ transaction review, underscoring the company’s focus on long-term alignment with regulatory and operational priorities. Earnings per share saw an uplift to £0.40 for the nine months, up from £0.30 in 2023, reflecting improved earnings performance in continuing operations.
The quarter also marked a 9% rise in active customer numbers, reaching 1,701,100 active users compared to 1,563,762 in the prior year, highlighting Kindred’s ongoing focus on customer acquisition and retention within the competitive igaming market.
As Kindred continues its strategic review process with FDJ, the company remains focused on expanding its revenue base, managing costs, and adapting to evolving regulatory demands. These results showcase Kindred’s commitment to maintaining momentum across key financial metrics and reflect the company’s position as it addresses current industry challenges while prioritizing future growth opportunities.
Nils Andén, Kindred’s CEO, commented on the quarter’s results, “The positive momentum gained throughout the first half of the year continued as we stepped into the final half of 2024, with key markets maintaining strong performance. Total revenue for the third quarter was £294.5 million, representing a 4 per cent increase compared to the same period last year (5 per cent in constant currency). Excluding North America, total revenue increased by 6 per cent for the same period.
“I am very pleased that our underlying EBITDA came in at £63.4 million, reflecting an increase of 49 per cent year-over-year. This represents an underlying EBITDA margin of 22 per cent and demonstrates our scalable business model.
“The stellar performance and dedication from everyone at Kindred has resulted in a year-to-date underlying EBITDA of £196.3 million. I am very pleased that we would be well on track to achieve our stated underlying EBITDA target for the full year 2024 of £250 million.
However, following the expected completion of Kindred’s acquisition by La Fran=E7aise des Jeux (FDJ), Kindred will exit .com markets (including Norway) that don’t have a clear path to local regulation in the near future. This action will negatively impact our ability to reach our stated underlying EBITDA target.
“Our strategic focus on growth in locally licensed markets continues to generate long-term, sustainable revenue. Year-on-year Gross winnings revenue from locally licensed markets has grown 4 per cent versus the same period last year (7 per cent excluding North America). France has sustained strong momentum, further driven by both the Euros and the home Olympics. In addition to France, we have seen very positive results in the Netherlands, Romania and Denmark during the period.
“I’m thrilled that our in-house sportsbook development continues to progress according to schedule. Following successful launches in several smaller markets, we are now on track for our first locally licensed market launch later this quarter.
“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. Finally, I would like to take this opportunity to thank the global Kindred team for their unwavering resilience and dedication. Where one chapter ends, a new one begins.”
