Kindred Group has reported that the revenue generated by harmful gambling fell quarter on quarter in Q4 while player habits improved after intervention.
In Q4, revenue attributed to harmful gambling accounted for 3.1% of total revenues. It was less than the 3.3% recorded in both Q3 & Q1 as well as 3.1% reported in Q2.
Kindred stated that the rate represented all activity for its brands in the quarter ending 31 December. Kindred’s online gambling brands include Unibet, 32Red and others.
Kindred’s intervention continues to have a positive impact on the player behaviour
Kindred’s intervention led to a significant increase in players who improved their behaviour.
In Q4, 87.4% showed improved behavior after Kindred had taken some action. It was also the highest total for a quarter in 2023. This is up from 86.7%, 86.4% and 83.0% during Q3 and Q2.
Kindred stated that this positive trend is a testament to “unwavering dedication” and the collective efforts of group. It also reflects the operator’s ongoing commitment to foster positive changes within the industry.
Alexander Westrell, director of Kindred’s communications department, said that addressing the drop in revenues from harmful gambling will require a long term approach. It’s crucial to remember that the Journey towards Zero data shows a consistent decrease in revenue since 2020.
Since the third quarter 2021 the effect of interventions on healthier gambling behavior has improved, from 64.9% up to 87.4%. Our transparent reporting and consistency in work show this progress. This commitment is reflected in our transparent reporting and consistent work.
The Journey to Zero
Kindred started publishing information about harmful gambling revenues and the improvement after intervention in February 2021. Every quarter, updates are released.
Kindred is on a journey to zero, aiming to cut down revenue generated by harmful gambling to 0%. Kindred had hoped to reach this goal by the year 2023.
Kindred has not been able to meet this goal, but efforts are still being made to reach 0%.
FDJ eyes Kindred Acquisition
Last month or last week, news spread that La Francaise des Jeux had made an offer for Kindred. The proposed offer from French lottery and gaming giant FDJ is valued at SEK27.96bn (PS2.11bn/EUR2.47bn/$2.66bn).
FDJ stated that the merger would result in the creation of the second-largest operator within the European gaming industry. The combination will create a European gaming champion with higher revenue and earnings.
Kindred released preliminary results after the announcement of its offer for 2023. The results show that revenue as well as EBITDA are expected to increase over the next 12 months.
This update indicates revenue at PS1.21bn which is 13.3% higher than PS1.07bn projected for 2022. The underlying EBITDA is also expected to reach PS204.5m for this year, an increase of 58.3%.
