Kindred Group moots ‘merger or sale’

The group has posted a strong first quarter, but a sale or merger may now be on the cards as the operator mulls its future.

Stockholm-listed gambling operator Kindred Group has revealed it may be mulling a merger or sale, alongside reporting revenue of £306.4m ($381.7m) from both its B2B and B2C verticals in the first quarter of 2023.

The Q1 results detail a fairly robust quarter, but also note that the company has initiated a strategic review, which could result in the sale of the business or a merger with another entity.

In an update on its website, Kindred Group confirmed that the review process was underway and said that the business would not release any further updates until a final decision had been reached.

Meanwhile, the company recorded several robust metrics across the board. Gross winnings revenue from the B2C sector went up 23% to £297.3m. The company posted profit before tax of £30.4m and profit after tax of £25.6m.

The group highlighted several indicators of strong performance during the quarter.

The Netherlands saw a 24% increase in revenue year-over-year. Relax Gaming drove revenue to increase by 90% year-over-year, a significant upswing for the division.

Performance is so far going to stay in line with the 2023 guidance and the 2025 financial targets.

The group acknowledged that there have been some difficulties to address during the first three months of the year, including a penalty issued by the UK Gambling Commission against the group’s Unibet and 32Red brands. The total penalty payable to the commission is £7.1m.

The company offered a detailed breakdown of individual markets, arguing that despite the regulatory headwinds in the UK, it remained firmly established in the market and prepared to benefit from the oncoming regulatory challenges, such as the likely introduction of tighter rules on consumer protection.

Kindred Group has also reported that it had been able to further reduce its revenue from harmful gambling down to 3% over the last quarter and will continue to pursue a target of zero.

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Written by Barney


Barney is co-founder of When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.