Online gaming operator Kindred Group announced that as a result of its internal strategic review, the company will exit the North American market, with the expectations to have fully exited operations in the market by the end of Q2 2024, subject to the regulatory process.
The reallocation of financial and tech resources towards existing core markets will improve ability to capitalize on core market potential and gain market share, according to the company.
The reallocation of financial and tech resources enables Kindred to initiate growth initiatives across its core market footprint. These initiatives include, but are not limited to:
- Additional brand extensions of hyper local casino brands in selected markets
- Reallocation of marketing investments and tech resources to selected markets and strategic projects with convincing growth opportunities
- Continued product differentiation through exclusive content
Additionally, Kindred has introduced further cost reduction initiatives. In addition to non-headcount opex savings, Kindred has also addressed its organizational structure with the intent to achieve a leaner and more efficient organization focused on selective growth initiatives. This will include a reduction of over 300 employees (including employees in North America) and consultants during 2024.
The cost reduction initiatives are expected to result in annualized gross cost savings (opex and capex) of approximately GBP 40 million.
“The cost reduction actions announced today are both necessary and decisive,” said Nils Andén, Interim CEO of Kindred Group. “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.”