Kindred Group - Nils Andén, Tom Banks

Kindred highlights ‘dynamic sustainability’ in 2023 report

Kindred Group has published its combined Annual and Sustainability Report for the 2023 financial year. 

Providing an introduction to the company and its strategy and key value creation drivers, Kindred detailed its focus on expanding its share in locally regulated markets under the leadership of CEO Nils Andén.

Emphasising the importance of navigating complex regulations to deliver compelling experiences to its customers, the CEO summarised: “The geopolitical situation across Europe and other parts of the world continues to bring unrest, and during this time we have remained focused and supported each other when needed.”

This strategy, Kindred explained, has not only enabled the firm to build further market share, but also to reinforce its commitment to providing a safe and secure gambling environment for customers.   

“Kindred is an extremely successful growth story over the years, partly thanks to our ability to come together as a team, and we remain committed to our purpose of transforming gambling by being a trusted source of entertainment that contributes positively to society,” Andén added.

In terms of sustainability, Kindred stated that 82% of its revenue now comes from locally regulated markets, which it believes puts itself ‘at the forefront’ of promoting a sustainable business model that prioritises customer safety and societal contribution.

Some figures that the report details are 10.7% in global online gambling market compound annual growth rate (2023-2028), £1.2bn in annual revenues 2023 (2022: GBP 1.1bn), 16.3% compound annual growth rate of revenue (2013-2023), 3.1% share of GWR from high-risk customers in Q4 2023 and finally an approximate 75-100% pay-out ratio of free cash flow over time.

Rachel Randle-Williams, Chief Human Resources Officer at Kindred, commented: “Sustainability is as dynamic as Kindred, CSRD presents an opportunity to define and value the work engrained across our business.

Furthermore, the report also outlined how innovation is key to staying ahead in the rapidly evolving online gambling sector. 

The group lauded its proprietary Kindred Sportsbook Platform (KSP) as a ‘testament’ to its commitment to technology-driven solutions, describing how the platform will allow for a ‘unique and differentiated’ entertainment experience.

Additionally, Kindred described the group’s vulnerability management programme which identifies vulnerabilities through automated scanning. 

The report said: “Although automated scanning is effective at broadly identifying vulnerabilities quickly, it is often quite high level. To obtain a focused and detailed perspective on vulnerabilities, Kindred Group maintains a red team and a bug bounty programme (‘good guy hacking’).”

In 2023, the team found 137 vulnerabilities including five that were critical (2022: 25, two; 2021: 77, seven).

Moreover, the group also emphasised that by the end of 2023, 73% of the electricity consumption under its control was from renewable sources (market-based), through the purchase of Renewable Energy Certificates.

“By the end of 2027, we aim to reduce absolute Scope 1 and 2 emissions by 90%, and our Scope 3 emissions by 35%, in alignment with our SBTi commitment,” it said.

Finally, Kindred’s financial performance in 2023 was described as robust – seeing a total 13% increase in revenue. 

Andén concluded: “At the beginning of 2023, we promised to reach an underlying EBITDA of at least £200m by the end of the year – a fairly bold target at the time. I am extremely proud of everyone at Kindred as we managed to meet that target.

“Knowing that we can achieve what we set our mind to, as long as we remain focused and consistent, we have agreed with our Board to deliver an underlying EBITDA of £250m by the end of 2024.”

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