Key points:
- Both Kindred’s Q3 and January-September revenue increased by 4% year-on-year
- Q3 gross profits fell by 18.8% despite an underlying EBITDA rise of 49% year-on-year
- Despite a profit decline in Q3, profits for the year so far remain on the rise in comparison to last year’s figures
Kindred Group has released its financial results for the third quarter of 2024, revealing a 4% revenue rise to £295.4m ($382.2m) year-on-year, mirrored by an 18.8% decrease in gross profits – which settled at £12.5m.
Q3 highlights
Quarterly profits after tax also fell by 27% year-on-year, resting at £9.6m compared to the £12.6m recorded in Q3 2023. However, Kindred states that its profit figures have been affected by the ‘significant’ strategic review costs accumulated as part of its large-scale takeover by La Française des Jeux (FDJ) – which saw the French operator acquire a little over 90% of Kindred’s shares.
The group’s underlying EBITDA experienced a notable increase year-on-year, rising by 49% in comparison to Q3 2023 to a figure of £63.4m for Q3 2024. Subsequently, this significant increase constitutes an underlying EBITDA margin of 22% - with the group’s overall EBITDA figure for 2024 so far reaching £196.3m - 33% higher than this time last year.
During the year’s third quarter, Kindred’s gross winnings revenue (B2C) also rose by 3% to £283.1m, bringing the figure up to £897.9m for the year so far. Further, its number of active customers also experienced a healthy increase of 9% to 1.7m over the course of Q3 2024.
Good to know: Following the FDJ deal, a total of six Kindred board members have resigned, including the Chairman, as part of an executive reshuffle
A word from the CEO
Kindred CEO, Nils Andén, spoke on the company’s latest financial results, saying: “"The positive momentum gained throughout the first half of the year continued as we stepped into the final half of 2024, with key markets maintaining strong performance.”
He continued: “Our strategic focus on growth in locally licensed markets continues to generate long-term, sustainable revenue.
“Year-on-year gross winnings revenue from locally licensed markets has grown 4 per cent versus the same period last year (7 per cent excluding North America). France has sustained strong momentum, further driven by both the Euros and the home Olympics. In addition to France, we have seen very positive results in the Netherlands, Romania and Denmark during the period."
The year so far
Regarding figures from the full year (January-September) so far, revenue has risen by 4% again, to a figure of £929.8m. Additionally, despite the costs accumulated from navigating the FDJ acquisition by the group, Kindred’s profit before tax for the year so far is 31% higher than it was at the end of Q3 last year. Profits after tax for the full year so far also settled at a figure of £85.5m, an increase of 25.9% year-on-year.
The FDJ takeover
Following the release of its Q2 & H1 2024 financial results in July, the year’s third quarter was largely dominated by the FDJ takeover – with the acquiring company bringing forward the offer deadline for the deal at the end of September to the 2 October. Since that time, FDJ completed its tender offer earlier this month – acquiring approximately 90.66% of Kindred Group’s shares. Yesterday, FDJ also announced a recommended public offer to the holders of Swedeish Depository Receipts (SDRs) in Kindred Group to sell their SDRs for SEK 130 in cash. Following this development, Kindred's BOD has now applied for delisting of its SDRs from Nasdaq Stockholm.
Forward facing
As part of his Q3 statement, Andén also reflected on the takeover, stating: "With the public offer by FDJ now completed, and as we transition into the next exciting phase in Kindred's history, I would like to take this opportunity to thank investors in Kindred, both past and present. Twenty years as a public listed company on Nasdaq Stockholm comes to an end.
"Together, we have made a significant contribution to the creation of a competitive, digital and sustainable online gambling industry. Finally, I would like to take this opportunity to thank the global Kindred team for their unwavering resilience and dedication. Where one chapter ends, a new one begins."