Kindred Group announced it will exit North America by the end of Q2 2024 as part of an ongoing strategic review. The group also announced actions to drive growth in core markets and cost reduction initiatives, which include a reduction of over 300 employees and consultants during 2024. These initiatives are expected to result in annualized gross cost savings of approximately £40 million ($50.7 million).
According to the announcement, the company’s North American exit will begin immediately, with Kindred saying it hopes to complete the withdrawal within six months. As per the company, the move would allow for the “reallocation of financial and tech resources to existing core markets.” It added that this would “improve the ability to capitalize on core market potential and gain market share.”
According to the operator, the resources reallocation will support initiatives such as additional brand extensions of hyper-local casino brands in select markets and continued product differentiation through exclusive content.
Nils Andén, Kindred interim CEO, 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,” he added
Nils Andén, Kindred interim CEO
While Andén said the review remains ongoing, he did hint at the possibility of a full or partial sale. ”The strategic review initiated by the board remains ongoing and we continue to advance a number of options to deliver shareholder value,” Andén said on Wednesday.
The board currently believes that shareholder value will be maximized through a third-party transaction. ”We will provide a further update regarding the exploration of strategic alternatives when final decisions have been made by the board of directors,” he stated.
The group launched its strategic review in April with the aim of cutting costs. At the time, Kindred said this could lead to the full or partial sale of the business.
The group currently has a presence across a number of US states. Kindred’s Unibet brand has been active in Pennsylvania since September 2019, when the brand launched as a retail sportsbook in partnership with Mohegan Sun Pocono. In July this year, the company announced the launch of its proprietary tech platform in that state.
In May, the business launched its platform in New Jersey. The New Jersey Division of Gaming Enforcement gave final approval for the platform’s launch earlier in the year. Kindred was already active in the state via Unibet. Other operating markets include Virginia with Unibet, Arizona, and Washington State in partnership with the Swinomish Tribe. In addition, Unibet is active in Ontario, Canada.
In addition to the North American exit, Kindred is also pulling out of Norway. This process is due to be completed before the end of the year according to Norway’s regulator Lotteritilsynet.