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Kindred Group Publishes Preliminary 2023 Financial Figures

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Kindred Group has published its preliminary financial figures for the year 2023, showing an increase in both revenue and underlying EBITDA.

The company reported revenue of £1.21 billion, a sizeable 13.3% increase from the previous year’s £1.07 billion. Gross winnings from B2C activities are expected to increase by 12.4% to £1.17 billion. Revenue from the B2B segment is also on the rise, projected to increase by 49.6% to £38.6 million.

Despite these increases, Kindred is also facing higher expenditure, with total sales costs up by 9.5% to £530.7 million, leading to a projected gross profit of £679.8 million, marking a 16.4% increase. Marketing expenses are slightly down, but salaries and other operating costs are expected to rise. Nonetheless, the boost in revenue is set to push the underlying EBITDA up significantly to £204.5 million, which would be a 58.3% increase from 2022.

A Strong End to 2023

Kindred’s update also includes details of performance in the last quarter of 2023. The company expects a 2.4% revenue increase to £312.9 million for this period. This growth is attributed to strong performances in several key markets and the positive trajectory of the Relax Gaming business acquired in October 2021.

Despite regulatory challenges in certain regions, revenues from both B2C and B2B segments are expected to rise. The casino and games sector experienced a 5.0% increase in gross winnings revenue, while sports betting revenue reached £114.9 million. Locally regulated markets contributed 82% of the gross winnings revenue for Q4. However, the company managed to decrease its total cost of sales by 3.1% and slightly reduced marketing expenses, leading to an anticipated 45.3% increase in underlying EBITDA for the quarter, reaching £56.8 million.

Full Year and Q4 Results Due in February

Kindred is preparing to publish its complete annual and Q4 figures next month. The preliminary figures were published as a result of the acquisition offer from FDJ.

The French lottery and gaming giant has put forth a proposal to purchase all outstanding share capital of Kindred, valuing the deal at SEK27.96 billion. This offer equates to SEK130 in cash for each Swedish Depository Receipt in Kindred, representing a valuation of 10.9 times Kindred’s 2023 underlying EBITDA.

Kindred has recommended its shareholders to accept this offer, which has also garnered support from the FDJ board. If realized, this will be one of the biggest gaming acquisitions in the industry and would create the second-largest operator in the European gaming sector.

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