Kindred Group has announced that it will exit the North American market, as well as announcing decisive actions to drive growth.
The company will begin the process to confirm its exit from North America immediately and is fully expecting to have finalized everything related to its exit by the end of Q2 2024, subject to regulatory processes.
On top of its exit plans, Kindred has also announced plans to help drive the growth of the business in its core markets, as well as cost reduction methods. This will include a reduction of over 300 employees and consultants during the course of next year. It has been estimated that approximately £40m ($50.8m) in annualized cost savings will be made, as a result of the cost-saving initiatives.
Through these cost-saving measures, Kindred is aiming to bring in additional brand extensions of hyper-local casino brands in selected markets, re-allocate marketing investments and tech resources to selected markets, and strategic projects and continued product differentiation.
Interim CEO of Kindred Group, Nils Andén, said: "The cost reduction actions announced today are both necessary and decisive. While it is never a desire to inform valued colleagues of redundancies, this puts us in a stronger position to secure long-term growth for Kindred across our locally regulated core markets.
"We can now focus our resources and tech capacity towards strategic initiatives and selected markets where we see clear potential to grow our market share.”
In Kindred’s unaudited interim Q3 2023 results, it reported total revenue of £283.9m ($360.3m), representing an annual increase of 2%.
