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Major video game company Kindred unveils its Q4 2023 financial report post FDJ's acquisition proposal.

SymClub
Aug 25, 2024
2 min read
Newsonlinecasinos Germany
Speculations surface about Possible Acquisition of Kindred by FDJ in 2023.
Speculations surface about Possible Acquisition of Kindred by FDJ in 2023.

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The Observatory has yet to receive any feedback from the pertinent stakeholders, as observed by the Commission.

After the takeover proposal by French gambling giant La Française des Jeux (FDJ), Kindred disclosed its financial stats for the last quarter of 2023. These figures point to a rise in earnings, which Kindred credits to robust growth in numerous European nations.

Revenue increment by 2.4%

The Maltese online casino operator Kindred released a statement on January 22 [Link in English] revealing its financial data for the last quarter of 2023. Between October and December 2023, the total revenue amounted to £312.9 million (€365.3 million).

The numbers suggest a 2% surge compared to the corresponding period in the previous year. This rise is attributed to robust performances in Kindred's major markets.

More notably, the casino and gaming sector has witnessed growth, with a 5% increase compared to 2022. Sports betting revenue initially dipped at the start of the fourth quarter but eventually bounced back. The gross win from sports betting in the fourth quarter stood at £114.9 million (€134.22 million).

The growth was primarily fueled by advances in the Netherlands, the UK, Romania, and the casino segment. Kindred**

Kindred has been impacted by advertising restrictions in Belgium and Norway. Belgium's ban on online casino advertising in 2018 has adversely affected Kindred's earnings. Since June 2023, Kindred has also been barred from offering online gambling in Norway following a court decision.

Is a takeover imminent?

Following the announcement of FDJ's takeover proposal, Kindred publicized a press release encouraging shareholders to accept the offer.

However, whether the offer will be accepted remains uncertain, as FDJ has set certain prerequisites. These include acceptance of the offer by at least 90 percent of Kindred's shareholders, obtaining all necessary approvals, and avoiding any incidents that could deteriorate Kindred's financial position.

FDJ also thrived in 2023

After the takeover proposal was launched, FDJ is said to have released its financial data for the past year [Link in English]. Total revenue for 2023 was €2.62 billion.

Online gambling profits experienced a 18.8% surge, making this sector now account for 18.8% of the company's total revenue. In 2022, this percentage was 11%.

Despite the growth in various European markets, including the UK and Netherlands, Kindred's expansion in Germany through online casinos is a strategic focus.

Germany, with its regulatory changes, presents a significant opportunity for Kindred to boost its online casino revenue, making it an essential market to watch in 2024.

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