Kindred Group Reports Preliminary Q4 2023 Financial Results

Following the announcement of a recommended public cash offer by La Française des Jeux SA (“FDJ”) for Kindred Group plc (“Kindred”), Kindred has released preliminary financial information for the fourth quarter of 2023. This period saw Kindred continuing its strong performance in several key markets, with notable growth in Relax Gaming’s business, validating its scalable business model.

For the fourth quarter of 2023, Kindred reported total revenue (B2C and B2B) of £312.9 million ($397.3 million/€364.7 million), a 2% increase from GBP 305.5 million in Q4 2022, and 4% growth in constant currency. This rise was primarily driven by expansions in the Netherlands, the UK, Romania, and particularly in the casino segment, despite regulatory challenges in Belgium and Norway.

The casino and games segment displayed robust performance, with a 5% increase in gross winnings revenue compared to the same quarter last year. Despite a challenging start in October with low sports betting margins, sports betting gross winnings revenue reached £114.9 million, with a post-free bets margin of 9.9%.

The share of gross winnings revenue from locally regulated markets stood at 82% for Q4 2023. The underlying EBITDA for the quarter was £56.8 million, up 45% from £39.1 million in Q4 2022, and the underlying EBITDA margin increased by 5 percentage points to 18%. This growth was largely attributed to revenue increases and focused cost optimization, along with a substantial contribution from Relax Gaming, which reported a 33% adjusted total revenue growth and an underlying EBITDA contribution of £7.4 million.

The North American market’s negative underlying EBITDA contribution was £6.1 million. Excluding North America, the underlying EBITDA margin for the quarter was 21%. As per Kindred’s Q3 report last year, the full year 2024 underlying EBITDA is anticipated to reach £250 million.

The unaudited financial summary for Q4 and the full year of 2023 shows gross winnings revenue, other revenues, costs, and profits. These preliminary figures have not been reviewed by the Company’s auditors. The detailed year-end report for 2023 will be published on February 7, 2024, at 07:30 CET, followed by a webcast presentation and Q&A session at 10:00 CET the same day.