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Kindred reduces harmful gambling revenue in Q4

| By Robert Fletcher
Kindred Group reported a quarter-on-quarter fall in the percentage of revenue it generates from harmful gambling in Q4, while players' habits after intervention improved.
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Revenue classed as being from harmful gambling in Q4 stood at 3.1% of all revenue in the quarter. This was lower than 3.3% in both Q3 and Q1 and in line with 3.1% in Q2.

The rate, Kindred said, represented activity across all of its brands during the three months to 31 December. Kindred counts Unibet and 32Red among its online gambling brands.

Player behaviour continues to improve after Kindred intervention

The decline in problem gambling revenue was coupled with a rise in the number of players whose behaviour improved after intervention from Kindred.

During Q4, some 87.4% of customers displayed improved behaviour after Kindred took some form of action. This was the highest quarterly total of 2023, up from 86.7% in Q3, 86.4% in Q2 and 83.0% in Q1.

Kindred said this sustained positive trajectory is testament to the “unwavering” dedication and collective efforts of the group. The operator also said it reflects its ongoing commitment to fostering positive change within the industry.

“Addressing the decline in revenue from harmful gambling requires a long-term view,” Kindred director of communications Alexander Westrell said. “It’s important to note that our Journey towards Zero data has shown a steady decrease since 2020. 

“Since the third quarter of 2021, the healthier gambling behaviour effect after interventions have improved from 64.9% to 87.4%. This progress shows in our transparent reporting and consistent work. It highlights our company-wide commitment and has become a core part of Kindred’s DNA.”

Journey to Zero

Kindred began publishing details of harmful gambling revenue and improvement effect after interventions in February 2021. Updates continue to be released every quarter.

This forms part of Kindred’s Journey to Zero, where it is seeking to reduce revenue from harmful gambling to 0%. Kindred has hoped to achieve this goal by 2023.

While Kindred was not able to achieve this target, efforts continue to reach the 0% goal.

FDJ eyes Kindred acquisition

The latest figures come after news broke last month of  last week of La Française des Jeux (FDJ) tabling an offer to acquire Kindred. The proposed offer from French lottery and gaming giant FDJ is valued at SEK27.96bn (£2.11bn/€2.47bn/$2.66bn).

FDJ said the deal would create the second largest operator in Europe’s gaming sector. It added the combination would result in a “European gaming champion” with stronger revenue and earnings growth.

After the offer was announced, Kindred also posted a preliminary set of results for its 2023 financial year. These reveal an expected rise in both revenue and underlying EBITDA during the 12-month period.

The update shows revenue of £1.21bn, which would be 13.3% more than £1.07bn in 2022. In addition, underlying EBITDA for the year is set to hit £204.5m, up 58.3%.

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