Revenue growth despite setbacks: Kindred sets tone for 2024
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25 Oct 2024 •
Reading time: 2 minutes Kindred Group has achieved revenue growth of 4% in the third quarter of 2024, despite a 10% decline compared to the same quarter last year. The company is on track to meet its full-year targets, ahead of the integration with La Française des Jeux (FDJ), following its acquisition earlier this month.
Revenue growth in the third quarter despite challenges
Kindred Group reported total group revenue of £294.5 million (€352.2 million/$382.3 million) in the third quarter of this year in a preliminary trading update on 17 October. This represents a 3.7% increase compared to the £283.9 million recorded in the same period last year.
This growth comes despite a significant decline compared to the second quarter of 2024, when revenue was £327.6 million. The quarter-on-quarter decline is largely due to the impact of major sporting events such as the European Championships, which caused a temporary spike in the second quarter.
Kindred’s share of gross profit revenue from locally regulated markets remained stable at 83% in the third quarter, a record the company first achieved earlier in 2023.
While Kindred has not yet released its EBITDA (earnings before interest, taxes, depreciation, and amortization) for the third quarter, the company said it is on track to meet its full-year target of £250 million in EBITDA for FY24.
Kindred prepares for new phase after FDJ acquisition
The €2.45 billion acquisition of Kindred by La Française des Jeux (FDJ) closed this month. FDJ announced the combined group revenue of both businesses on 17 October. This marks the start of a new phase for Kindred, which is now part of one of the largest gambling operators in Europe. FDJ expects this acquisition to make it the second largest gambling provider in Europe.
FDJ submitted the offer to acquire Kindred in January this year, and the offer was approved by 90% of Kindred shareholders. Kindred’s board unanimously recommended that shareholders accept the offer, completing the acquisition in October 2024.
Changes to Kindred’s board following acquisition
Following the acquisition, FDJ immediately implemented a number of changes to Kindred’s board. The chairman, Evert Carlsson, and five other board members stepped down. They were replaced by three new directors, all from FDJ. Pascal Chaffard was appointed as the new chairman, with Edeline Minaire and Célia Véro as the other new board members.
With this acquisition and management changes, Kindred is at the beginning of a new era, in which it aims to further strengthen its position within the European gambling market.