Kindred Group reported a 13.3% increase in revenue for its 2023 fiscal year driven by growth in the Netherlands, UK, and Romania.
The company’s board of directors appointed Nils Andén as permanent CEO after he held the interim position since May 2023.
“I am grateful and proud to have received the Board’s confidence to continue in the role as CEO of Kindred Group," Andén said of the appointment. "We have a great team who are working hard to deliver on an exciting strategy that will strengthen Kindred’s position in locally regulated markets, and I look forward to continue to execute on our plan.”
Key highlights from the annual report
Kindred reported €1.21 billion in total revenue, up from €1.07 billion in 2022. Of that revenue, 97% was generated from business-to-consumer operations, while 3% came from their business-to-business operations through Relax Gaming. The report noted that “Relax Gaming’s business continues to show encouraging growth and proof of its scalable business model.” Relax Gaming revenue jumped nearly 50% year-over-year and the business’ underlying EBITDA contribution was also up 72%.
Underlying EBITDA increased 58% through the one-year period to €204.5 million. Revenue from Dutch operations rose by 19% year-over-year and UK operations grew by 17%.
The casino and games segment contributed 57% of gross winnings revenue during Q4 2023, up 7% compared to the same period last year. Romania stood out, as the casino gross winnings revenue in the country increased by 9% from 2022 to 2023.
Enjoying Covers content? Add us as a preferred source on your Google account"During 2023, we provided guidance of €200m in underlying EBITDA, and I am very pleased that we have delivered on that target," Andén commented on the Group’s annual performance. "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."
Changes coming to one of Europe’s largest online gambling companies
The 2023 annual report comes on the heels of the Kindred Group Board backing a $2.7 billion offer from French Gaming Company FDJ to acquire all outstanding share capital of Kindred. The Stockholm-based company, the owner of popular sportsbook operator Unibet, decided in April 2023 to review strategic business alternatives and underwent an executive restructuring in May 2023 to ramp up plans to sell the company. Unibet also pulled out of the North American market and cut 330 jobs in November 2023.
Despite the changing tides. Andén expects strong performance in 2024.
“I remain confident that Kindred can deliver above-market growth across our portfolio during 2024," he said. "We see robust performance in select core markets, and I expect this momentum to continue going forward.”
For the full year 2024, the group is still committed to its underlying EBITDA target of €250 million.
