SLIEMA, Malta - Kindred Group plc, an online gambling operator, disclosed preliminary financial results for the fourth quarter of 2023 today, following the announcement of a public cash offer by La Française des Jeux SA (FDJ). Despite regulatory challenges in certain regions, the company reported a revenue increase and significant growth in underlying EBITDA.
For the quarter ending December 31, 2023, Kindred's total revenue rose to GBP 312.9 million, marking a 2% increase from GBP 305.5 million in the same period the previous year. This growth was particularly strong in the Netherlands, the UK, and Romania, as well as in the casino segment. However, regulatory measures in Belgium and Norway had a negative impact on overall growth.
The casino and games segment showed a 5% increase in gross winnings revenue compared to the same quarter last year. Sports betting also recovered from a slow start, with gross winnings revenue reaching GBP 114.9 million and a sports betting margin after free bets of 9.9%.
Kindred's underlying EBITDA for the fourth quarter surged by 45% to GBP 56.8 million from GBP 39.1 million in the previous year, with an EBITDA margin increase of 5 percentage points to 18%. This was largely due to revenue growth and a focus on cost optimization. Relax Gaming, a subsidiary of Kindred, contributed to this success with a 33% adjusted total revenue growth and an underlying EBITDA contribution of GBP 7.4 million.
Despite these positive results, the North American market presented challenges, contributing a negative underlying EBITDA of GBP 6.1 million. Excluding North America, the underlying EBITDA margin for the quarter would have been 21%.
Looking forward, Kindred anticipates a full year 2024 underlying EBITDA of GBP 250 million, as stated in their third-quarter report. The company will publish its year-end report for 2023 on February 7, 2024, with a results presentation and Q&A session to follow via webcast.
The preliminary financial figures have not been reviewed by auditors and are based on a press release statement. The company's share of gross winnings revenue from locally regulated markets stood at 82% for the final quarter of 2023, highlighting its compliance with regional regulations.
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