Kindred exits Nasdaq, Q3 revenue growth

Garance Limouzy October 25, 2024

SiGMA news

Kindred Group, recently acquired by France’s FDJ (La Française des Jeux), published its Q3 2024 results. The third quarter brought financial growth alongside strategic shifts, including Kindred’s departure from Nasdaq Stockholm, a decision marking the end of two decades on the exchange.

Strong Q3 performance

Kindred reported £294.5 million (€353 million) in total revenue, a 4 percent increase from £283.9 million (€340 million) in the same quarter of the previous year. CEO Nils Andén (pictured above) stressed the significance of this sustained growth across key markets, noting that “positive momentum gained throughout the first half of the year continued” with a total revenue increase of 5 percent in constant currency. Excluding North America, revenue rose by 6 percent, reflecting an increasingly solid base in European markets. Gross winnings revenue, driven primarily by Kindred’s B2C segment, climbed 3 percent to £283.1 million (€340 million). Additionally, Kindred saw an impressive 49 percent rise in underlying EBITDA, reaching £63.4 million (€76 million)—a result Andén attributes to a “scalable business model.” This strong EBITDA performance, representing a 22 percent margin, has pushed year-to-date EBITDA to £196.3 million (€235 million), bringing Kindred closer to its ambitious 2024 target of £250 million (€300 million).

Focusing on licensed markets

The company has announced its plans to exit non-regulated markets, including Norway. “Following the expected completion of Kindred’s acquisition by La Française des Jeux, Kindred will exit .com markets that don’t have a clear path to local regulation in the near future,” stated Andén, adding “this action will negatively impact our ability to reach our stated underlying EBITDA target.” The shift, however, could bear fruit in the long run, as Q3 2024 saw a 4 percent increase in gross winnings revenue in licensed markets. Success in France, the Netherlands, and Denmark, driven by popular events like the Euros and the Olympics, reinforced the value of Kindred’s compliance-centric strategy. Andén elaborated on this focus, stating, “Our strategic focus on growth in locally licensed markets continues to generate long-term, sustainable revenue.”

Growing revenue from high-risk players

Amid financial gains, a 3.2 percent share of gross winnings revenue from high-risk players, a rise from 3 percent in Q2 2024, and a challenge to Kindred’s commitment to fostering responsible gambling. Esther Scheepers, Kindred’s Head of Responsible Gambling, acknowledged this, stressing that it “reinforces the need for further advancements in our behavioural harm detection and automated intervention systems.” Since launching its “Journey Towards Zero” initiative in 2021, Kindred has pledged to eliminate revenue from harmful gambling by reporting quarterly on this metric. In Q3, interventions had a positive impact on player behaviour, with an improvement rate of 87.3 percent—up slightly from the previous quarter’s 86.8 percent—demonstrating some success in harm reduction efforts. Scheepers said that the company’s sophisticated detection systems, paired with new technology, are advancing the effectiveness of these interventions. She added, “By combining our own knowledge with new and improved technology, we can enhance detection capabilities further.”

Kindred’s exit from Nasdaq Stockholm

FDJ’s acquisition of Kindred, soon to include all of Kindred’s shares, prompted its exit from Nasdaq Stockholm, where it had been listed since 2004. Andén, Kindred’s CEO, reflected on this milestone: “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.”