Kindred Group Sees Improved Results as North American Exit Looms
Kindred Group has kicked off 2024 with solid financial results in the first quarter. Their total revenue edged up slightly to GBP 307.7 million from GBP 306.4 million in the previous year, reflecting stable growth, particularly in locally regulated markets which now represent an all-time high of 84% of gross winning revenue.
Effective Cost Management and Strategic Pivot
The Group’s emphasis on cost reduction and efficient operational management is evidently paying dividends. The underlying EBITDA saw a notable 20% increase to GBP 59.3 million, up from GBP 49.4 million, signifying effective control over expenses and a robust increase in profits before tax which climbed to GBP 39.8 million from GBP 30.4 million.
In North America, Kindred faced a challenging regulatory environment which influenced their decision to consolidate their operations.
The focus has now shifted to harnessing opportunities in regulated European markets where they have better control and understanding of compliance requirements.
This pivot is expected to streamline operations and bolster growth in these regions. Notably, the company has seen positive traction in the Netherlands, the UK, and Romania, with a 5% growth in these markets.
Regulatory Challenges and Opportunities
The regulatory landscape remains challenging yet promising, as demonstrated by the varied performance across the Nordic region.
In Sweden, despite a decrease in gross winnings, there was a noticeable increase in active customers. Kindred’s new casino brand, Otto Casino, launched in mid-April, is part of broader initiatives aimed at overcoming market challenges and enhancing competitive positioning.
Additionally, the B2B segment under Relax Gaming has shown impressive performance, contributing to the company’s revenue stream and showcasing the potential for further scalable growth.
CEO’s Message
Nils Andén, CEO of the company said “We have had a solid start to 2024 with the underlying business operations performing well and operational initiatives moving forward according to plan. The headcount reduction plans announced at the end of last year are progressing as intended and the North America exit is set to conclude towards the end of the second quarter this year.”
“Our growth plan that we launched during the fourth quarter last year, focusing on Europe and Australia, continues at pace with dedicated strategic growth projects across locally regulated markets,” Andén added.
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