Kindred Group plc considers sales and merger options as part of strategic review

Malta-based Kindred Group plc on Wednesday (today) announced the launch of a strategic review where it is weighing possible sale or merger options – in whole or in part – or other possible strategic transactions.

In a statement, the Board of Directors said it “unanimously” decided to initiate the process to increase shareholder value. The Board has retained PJT Partners, Morgan Stanley & Co. International plc and Canaccord Genuity, as financial advisors and to assist in its review of strategic alternatives. White & Case has been appointed as legal advisor in connection with the review process.

It gave no timetable by when the review will be completed and said it could not provide assurance on the outcome of the review. Further, the Board added that the group is under no obligation to make further announcements unless or until final decisions are made.

Alongside the group’s announcement of a strategic review, it also released its financial results for the first quarter of 2023. Kindred enjoyed growth across both revenue and net profit, while its chief executive, Henrik Tjärnström, praised the outcome of cost optimisation initiatives previously announced.

Q1 Results

Total revenue, from both B2B and B2C operations for the first three months of 2023 stood at €346.3 million, up 24.2 per cent from the same quarter in 2022. Of this, €335.6m came from gross winnings revenue within B2C operations, an increase of 23 per cent.

Pre tax profit came in at €28.9m, €7.2m attributed to its B2C operations and earnings per share stood at €0.14.

Commenting on the results, Mr Tjärnström said:

“The first quarter of 2023 has seen encouraging improvements in both revenue and profitability, with the underlying EBITDA margin increasing to 16 per cent. The cost optimisation initiatives previously communicated have been implemented during the quarter, however there is a lag before we see the full effect on the numbers.

“..Our strategic focus on unique products and increased control of our offering has resulted in our second exclusive game from Relax Gaming launching during the first quarter. The game is among the top five releases in the past twelve months and a top three performer in 2023, proving the value created through exclusive and high-quality content.”