Total group revenue for Kindred in Q1 increased 24 per cent to £306.4m, with the Netherlands beating the company’s forecasts, according to CEO Henrik Tjärnström.
The Dutch market contributed £57.3m in gross winnings revenue in the latest quarter, an increase of eight per cent.
“We remain firmly on track towards market leadership for the full year 2023,” Tjärnström said of the Netherlands.
“However, while most of our core markets continue to perform well, the challenges faced in Belgium continue. This is primarily related to Kindred putting in place stricter anti-money laundering checks and improved responsible gambling processes.”
Overall gross winnings revenue B2C increased by 23 per cent to £297.3m, a decrease of one per cent excluding the Netherlands.
Underlying EBITDA increased by 102 per cent to £49.4m, with the underlying EBITDA margin increasing to 16 per cent.
Tjärnström said: “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.”
He added: “North America is seeing positive developments, with gross winnings revenue increasing to £8m and a declining negative underlying EBITDA contribution of £5.5m.”
Kindred has also revealed it is initiating a review of strategic alternatives as it looks to maximise shareholder value.
“Such alternatives could include a merger or sale of the Company (in whole or in part) or other possible strategic transactions,” a statement read.
PJT Partners, Morgan Stanley & Co. International and Canaccord Genuity are the group’s financial advisors, with the board setting no time frame for the review.
