Kindred Group Expects Revenue and Earnings Growth in 2023

Date: 2024-01-22 Author: Dima Zakharov Categories: EVENTS
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Kindred Group has unveiled an optimistic outlook for its 2023 financial performance, foreseeing significant increases in revenue and underlying EBITDA over the year. As the gaming industry continues to evolve, Kindred aims to solidify its position as a key player in the market.

Revenue Surges to £1.21bn

The preliminary results, published on January 22nd, indicate that Kindred Group is anticipating total revenue of £1.21 billion for the year 2023. This represents a notable 13.3% surge compared to the previous year's revenue of £1.07 billion.

Strong Growth in B2C and B2B Segments

Gross winnings revenue from the B2C activities is expected to grow by 12.4%, reaching £1.17 billion. Meanwhile, Kindred Group predicts a remarkable 49.6% boost in other revenue from the B2B segment, amounting to £38.6 million.

Increased Costs Offset by Profit Gains

Despite the impressive revenue growth, Kindred Group acknowledges that increased sales expenditures have led to a 9.5% rise in total costs, totaling £530.7 million. Nevertheless, this is offset by a gross profit of £679.8 million, marking a substantial 16.4% increase.

Upbeat EBITDA Forecast

With the substantial revenue growth, Kindred Group expects its underlying EBITDA for the year to reach £204.5 million, an impressive 58.3% higher than the previous year.

Strong Finish in Q4

The trading update also reveals a positive outlook for Q4 of 2023, with anticipated revenue of £312.9 million, a 2.4% increase compared to 2022. Key markets, including the UK and the Netherlands, continue to drive Kindred's growth, along with encouraging results from the Relax Gaming business.

Continued Expansion

Kindred Group's performance in the Netherlands, the UK, Romania, and the casino segment has been a driving force behind its growth. However, regulatory measures in Belgium and Norway have presented challenges.

FDJ's Acquisition Offer

In the midst of these impressive results, French lottery and gaming giant FDJ has tabled a €2.45 billion offer to acquire Kindred. The acquisition offer, worth SEK27.96 billion, is set to create one of Europe's largest gaming operators, with Kindred's board and shareholders unanimously endorsing the proposal.

As Kindred Group continues to make significant strides in the gaming industry, the acquisition offer from FDJ adds an intriguing twist to its ongoing success story.
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