Kindred Group Grows Revenue and Confirms Permanent CEO

For the 2023 financial year, Kindred Group saw a 13.3% increase in revenue and confirmed Nils Andén as its permanent CEO. The year was marked with growth in both its B2C and B2B businesses, although the company faced challenges, particularly with its exit from North America, announced in November. Kindred expects to complete its exit from North America by the end of Q2 as part of its strategic review initiated in April of the previous year.

In line with the review, Kindred will reduce its workforce by 300 across its business, including North America. This review also opened the possibility of a full or partial sale of the group. Recently, French lottery and gaming giant La Française des Jeux (FDJ) offered to acquire all outstanding share capital of Kindred for SEK27.96bn, which Kindred has recommended to its shareholders.

Andén, who took on the role of interim CEO in May following Henrik Tjärnström’s resignation, expressed his gratitude for being named permanent CEO and his optimism for the company’s future. However, despite the increase in revenue, Kindred reported a net profit decrease, emphasizing increased costs in their 2023 preliminary results for the 12 months. Revenue growth was complemented by increased costs, leading to a 53.1% decrease in pre-tax profit and a 60.7% drop in net profit.

The final quarter of 2023 also saw mixed results for Kindred, with revenue up and yet the group posting a net loss, attributed to market closure and contract termination costs and impairment expenses. Kindred highlighted that despite these challenges, its cost-saving initiatives will support long-term business growth and expects above-market growth across its portfolio in 2024.

Overall, despite the challenges faced during the year, Kindred remains optimistic about its future prospects under the leadership of its permanent CEO and aims to strengthen its position in locally regulated markets.

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