Kindred Group, for the period of January to December 2023, delivered growth in revenue and underlying EBITDA, exceeding its annual targets. In the fourth quarter of 2023, the group recorded total revenue of $394.31 million (GBP 312.9 million), representing a 2% increase compared to the previous year.
The gross winnings revenue (B2C) also saw a 2% uptick, reaching $380 million (GBP 301.6 million). Notably, underlying EBITDA surged by 45% to $71.5 million (GBP 56.8 million).
According to CEO Nils Andén, “The final quarter of 2023 saw sustained above-market performance in the Netherlands, UK, and Romania, which combined with continued growth in our B2B segment (Relax Gaming) generated total revenue of $394.31 million (GBP 312.9 million) and underlying EBITDA of $71.5 million (GBP 56.8 million) for the period, an increase of 45% compared to the same period last year.”
He further added, “During 2023, we provided guidance of $252 million (GBP 200 million) in underlying EBITDA, and I am very pleased that we have delivered on that target. Our performance demonstrates that Kindred is able to grow profitably within highly regulated markets. During 2023, 82% of Gross winnings revenue was generated from locally regulated markets.”
For the full year 2023, Kindred Group reported total revenue of $1,525.46 million (GBP 1,210.5 million), marking a 13% increase compared to the previous year. The gross winnings revenue (B2C) also experienced a notable 12% rise to $1,476.82 million (GBP 1,171.9 million). Underlying EBITDA surged by 58% to $257.71 million (GBP 204.5 million).
Andén reflected on the company’s strategic initiatives, stating: “The casino & games segment continues to grow well, contributing 57% of Gross winnings revenue during the quarter – up 7% versus the same period last year. The strong performance is testament to our strategic focus on enhancing the customer offering through exclusive games, improved supplier partnerships, and personalising the casino & games experience.”
He also highlighted the success of Relax Gaming, noting, “Relax Gaming continues to perform well with total revenue for the quarter increasing 33% versus the same period last year. The underlying EBITDA contribution was also up 72%, demonstrating the scalability of the Relax business.”
Despite the positive revenue growth, the company reported a decrease in net profit due to increased costs. Notably, cost of sales and administrative expenses rose, impacting the pre-tax profit, which stood at $74.92 million (GBP 59.5 million) for the year, down 53.1% from 2022. However, underlying EBITDA witnessed a substantial increase, indicating the company’s operational strength.
Looking ahead, Andén expressed confidence in Kindred’s ability to deliver above-market growth in 2024. He reiterated the company’s focus on strategic initiatives to improve profitability, including cost-saving measures and reallocating resources to areas with significant growth potential.
The trading update up to February 4, 2024, showed a slight decrease in average daily gross winnings revenue compared to the same period in the previous year. Despite this, Andén remains optimistic about Kindred’s future performance, citing robust performance in core markets and ongoing operational initiatives as key drivers for growth.
The company’s announcement coincides with Nils Andén’s confirmation as permanent CEO, following his interim appointment in May 2023. Andén expressed gratitude for the board’s confidence and reiterated his commitment to executing the company’s strategic plan to strengthen its position in regulated markets.