Kindred Group, a global online gambling operator, has announced a strategic withdrawal from the North American market by Q2 2024. The move is part of a broader strategy focusing on core markets and driving growth through cost-saving measures.
Kindred Group plc, a leader in the online gambling industry, has strategically chosen to exit the North American market. This move comes as an outcome of the strategic review initiated by the Board of Directors on 26 April 2023. The Group will withdraw by the end of the second quarter 2024, pending regulatory processes.
Reallocating Resources for Core Market Growth
The decision to leave the North American market allows Kindred to reallocate financial and technological resources towards its existing core markets. This shift is expected to enhance the Group's ability to capitalize on potential opportunities and gain market share in these critical areas. Kindred plans to implement various growth initiatives across its core market footprint, including:
Cost Reduction and Organizational Restructuring
In addition to refocusing on core markets, Kindred has announced significant cost reduction initiatives. These include savings on non-headcount operational expenses and restructuring its organizational framework. The plan is to create a leaner, more efficient organization concentrated on selective growth initiatives. A critical aspect of this restructuring involves reducing the workforce by over 300 employees and consultants in 2024, including those in North America. These measures are expected to result in annualized gross cost savings of approximately GBP 40 million in operational and capital expenditures.
Nils Andén, Interim CEO of Kindred Group, commented on the decision, stating, "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."
About Kindred Group
Kindred Group is among the world's leading online gambling operators, with operations spanning across Europe, North America, and Australia. The company offers over 30 million customers across nine brands a safe, fair, and sustainable form of entertainment. Employing approximately 2,500 people, Kindred Group is listed on the Nasdaq Stockholm Large Cap. It is also a member of the European Gaming and Betting Association (EGBA) and a founding member of the International Betting Integrity Association (IBIA). The Group is also certified by eCOGRA for compliance with the 2014 EU Recommendation on Consumer Protection and Responsible Gambling.
A Focused Future for Kindred Group
Kindred Group's decision to exit the North American market is pivotal in its business strategy. The Group is positioning itself for sustainable, profitable growth in its core markets by reallocating resources and introducing cost-saving measures. This strategic move highlights Kindred's adaptability and commitment to long-term success in the dynamic online gambling industry.
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