Kindred Group Confirms Nils Andén as Its Permanent CEO
LISTEN TO THIS ARTICLE:Kindred Group has announced a 13.3% rise in revenue for the 2023 financial year and the appointment of Nils Andén as its permanent CEO.
The company highlighted its growth in both B2C and B2B sectors as a key achievement of the year. Despite facing challenges, including its strategic decision to withdraw from North America by the end of Q2 2023, the company remains optimistic. The exit is part of a broader strategic review that was started in April 2023, which will also see the loss of 300 jobs across its operations, including those in North America.
This strategic evaluation may lead to the full or partial sale of the group. A few weeks ago, French lottery giant La Française des Jeux (FDJ) made a SEK27.96 billion offer for Kindred’s share capital, a proposal that Kindred has "unanimously" recommended its shareholders to accept. The offer acceptance period is expected to commence around 20 February and will end on 19 November.
Leadership and Strategic Direction
Nils Andén, who stepped in as interim CEO in May following Henrik Tjärnström’s resignation, has now been confirmed for the role on a permanent basis.
I am grateful and proud to have received the board’s confidence to continue in the role of CEO. We have a great team who are working hard to deliver on an exciting strategy that will strengthen Kindred’s position in locally regulated markets. I look forward to continuing to execute on our plan.
Mixed Financial Results
Kindred’s preliminary results for the year ending 31 December 2023 showed revenue growth but also rising costs. The finalized figures confirmed that revenue increased to £1.21 billion, with significant contributions from B2B operations and the Relax Gaming business. The group attributed this success to its re-entry into the Dutch market and strong performances in the UK and casino sector. However, it also said that there have been regulatory challenges in Belgium and Norway.
Increased expenses were a significant issue in 2023, with the cost of sales and administrative expenses rising. Despite this, the underlying profit prior to items affecting comparability was up 93% to £1409 million. However, there were a number of other costs, including market closure and termination costs and impairment losses, and when included with finance expenses, it resulted in a pre-tax profit that was 53.1% when compared to last year.
Andén Maintains Positive Outlook
Despite the mixed financial results, Andén remains optimistic about Kindred’s future, citing cost-saving measures and operational initiatives that are expected to bolster long-term profitability.
He said that the company is building a “stronger and more robust foothold” in core European markets and added that he remains “confident that Kindred can deliver above-market growth across our portfolio during 2024.”
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