Gaming operator Kindred Group has published its third quarter results, welcoming a “strong performance” in its key markets and a continuation of the positive momentum seen in the first half.

Kindred Group’s total revenue for the third quarter was £294.5 million, an increase of 4% on the previous year. The third quarter of the year saw a 3% increase in gross earned revenue (B2C), which stood at £283.1 million.

Improvements in player engagement and efficiency within the organization were evident in the company’s EBITDA figure, which increased by 49% to £63.4 million (from £42 .6 million pounds sterling last year).

“Our performance continues to demonstrate the strength of a diverse market presence,” commented Nils Andén, CEO of Kindred Group. “The positive momentum gained throughout the first half of the year continued as we entered the final half of 2024, with key markets continuing to perform strongly. »

The FDJ transaction impacts pre-tax income

The report showed the impact of what the group called “significant strategic review costs”, referring to its recent operation by the Française des Jeux (FDJ). The transaction generated a total pre-tax profit of £12.5 million for the third quarter.

FDJ obtained the support of 91.77% of shareholders to finalize the acquisition of Kindred Group on October 11. Following settlement and delivery of the extended offer, FDJ’s stake in Kindred will amount to 98.60%. This regulation is expected on October 29.

Profit after tax declined during the quarter, with Kindred reporting a pre-tax profit of £9.6m (compared to £12.6m last year). This figure includes a loss from discontinued operations of £400,000 and a profit from continuing operations of £10 million.

Looking at the current year, the picture is more positive, with Kindred reporting a 4% increase in total revenue, to £929.8 million, and a 3% increase in gross earnings revenue, at £897.9 million.

Increase in high-risk gambling revealed in third quarter results

Kindred’s third quarter results showed a slight increase in revenue from harmful gamblingcompared to the previous quarter. This increase has occurred despite investments in behavioral harm detection and other initiatives.

Unibet’s parent company has long aimed to achieve 0% revenue from harmful gaming, but its third-quarter results showed that high-risk players continue to make up a significant portion of its revenue.

High-risk revenue was reported at 3.2% in the third quarter of 2024, an increase from 3% reported in the previous quarter. However, the figure for the third quarter of 2024 is down from 3.3% recorded at the end of the third quarter of 2023.

Request for delisting announced

Last week, Kindred announced it was seeking delisting. Public offer recommended by FDJ to holders of Swedish Depository Receipts (the “SDRs”) of Kindred Group, aiming to tender all their SDRs into the company at a price of 130 SEK in cash per SDR. The offer then became unconditional on October 3.

After the acceptance period, FDJ now controls a total of approximately 98.60% of the Company’s outstanding SDRs. This decision led Kindred’s board of directors to request the delisting of SDRs from Nasdaq Stockholm. Kindred is expected to announce its last trading day once the date is confirmed by Nasdaq Stockholm.

Kindred CEO is convinced the group is on the right track

The quarter has not been without challenges for the Kindred Group, but it remains on track to achieve its underlying EBITDA target of £250 million by the end of 2024.

However, achieving this goal could be made much more complex by the group’s recent decisions to withdraw from markets like Norway, which do not yet have a clear path to local regulation.

“Total revenue for the third quarter was £294.5 million, an increase of 4% on the same period last year (5% in constant currency) . Excluding North America, total revenue increased by 6% over the same period,” Andén said.

Andén then explained that the group’s decision to exit markets like Norway “will have a negative impact” on the company’s ability to meet its stated underlying EBITDA target, but said the group looks forward to its “transition into the next exciting phase of Kindred’s story.” .”

“I am confident that we are on the right path to delivering a compelling experience for customers, in a safe and secure environment, which will ultimately produce positive results for all stakeholders. » » said Andén.

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