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Kindred Group reported a 58% year-on-year increase in EBITDA as the business recorded growth in its core markets.

The Unibet operator reported £1.21bn in revenue for the 12-month period ending 31 December, up 13% from the £1.07bn recorded in the previous period.

This came despite continued decline in the business’ Nordic revenue, driven by the decision to cease targeting Norway in-line with the wishes of the Norwegian authorities.

Underlying EBITDA increased 58% through the one-year period to £204.5m. Kindred’s 2022 exit and re-entry to the Dutch market was largely responsible for this, as well as growth in core markets including the UK, Romania and Denmark.

Overall, the company reported a post-tax profit of £47.2m, resulting in an earnings per share of £0.22.

Kindred US exit hits Q4 results

Turning to Q4, the business saw more tepid growth through the quarter. The business saw £312.9m in revenue for the period, up 2% compared to Q4 2022.

While underlying EBITDA also increased 45% to £56.8m, the business ultimately posted a post-tax loss of £18.7m.

Kindred’s more ambiguous results for the quarterly period is the result of costs associated with the company’s exit from the US, announced in November 2023.

While the business said it planned to completely end its American operations by Q2 2024, the company outlined a majority of the costs fell in Q4.

These included payments including relating to market access agreements and sponsorship deals.

“Following the cost optimisation initiatives announced at the end of 2023, we continue to reallocate resources and marketing investments into areas that will deliver improved growth,” said Kindred CEO Nils Andén.

“Specifically, this includes increasing focus on the profitable casino segment and concentrating our marketing efforts within markets where we see significant opportunity to outgrow the market.

“I remain confident that Kindred can deliver above-market growth across our portfolio during 2024. We see robust performance in select core markets, and I expect this momentum to continue going forward.”

In January, FDJ announced it had made a €2.45bn all-cash offer to acquire Kindred. This followed a successful campaign from activist investor Corvex Management, which holds a seat on the board.

The board has unanimously recommended shareholders accept the offer.

Business doubles down on in-house sportsbook

Despite criticism from company founder Anders Ström, Andén’s tenure has seen the company continue its plan of developing an in-house sportsbook.

Kindred spun-off its previous B2B sportsbook venture Kambi in 2014, in a deal that saw the provider continue to supply its sports betting technology to the operator.

In the firm’s full-year report, it highlighted continued capital investment in this venture.

Total capital development costs for 2023 were £45.6m, up 23.6% from the previous year.

“The increases when compared to the same periods in 2022 relate to selective headcount increases in the group’s Tech and Development function to support the launch of its proprietary platform in North America and the development of its in-house sportsbook platform,” said the business.

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