In 2023, Kindred experienced overall growth in both its B2C and B2B sectors, marking it as a positive year for the group.
Despite this progress, challenges arose, notably the decision to exit the North American market, announced in November.
The strategic review initiated in April led to this decision, alongside plans to reduce 300 jobs globally, including in North America.
As part of the review, Kindred hinted at a potential sale, which advanced with French gaming company La Française des Jeux (FDJ) submitting a bid of SEK27.96bn to acquire all outstanding shares.
Kindred has recommended shareholders accept this offer, with the acceptance period slated to start around February 20th and conclude on November 19th.
Reflecting on the FDJ offer and Kindred’s performance, CEO Andén expressed optimism.
Having served as interim CEO since May following Henrik Tjärnström’s departure, Andén now assumes the role permanently.
The preliminary results for 2023, released alongside the FDJ offer, revealed increased revenue but also warned of rising costs.
Full-year figures confirmed revenue growth to £1.21bn, primarily from B2B activities, and highlighted successes in the Dutch and UK markets.
However, regulatory measures in Belgium and Norway dampened overall growth.
Although the group’s net profit declined, with increased costs affecting profitability, underlying profit before items affecting comparability saw a significant rise.
Additional costs, including market closure and contract termination expenses, impacted the bottom line.
In Q4, Kindred posted a net loss despite revenue growth. B2C revenue increased, driven by casino and games, while B2B revenue saw growth from the Relax business.
However, increased costs led to a pre-tax loss.
Looking ahead, Andén remains positive, citing ongoing operational initiatives aimed at improving profitability.
Despite challenges in 2023, Kindred aims for above-market growth in 2024, bolstered by robust performance in core markets.