A big move
Kindred Group has announced that it is withdrawing from the North American gambling market following a strategic review. The Malta-based company hopes to complete this process by the end of the second quarter of next year.
will see more than 300 consultants and employees lose their jobs
It is also implementing other cost-cutting measures in an attempt to focus on growth in its main markets. Part of the cutbacks will see more than 300 consultants and employees lose their jobs, with Kindred hoping to save about £40m ($50.7m) annually.
It hopes to better allocate its resources to gain market share in other regions. Some of the growth initiatives include expanding the reach of certain local casino brands, re-allocating marketing and tech resources, and differentiating products with exclusive content.
Kindred Group Interim CEO Nils Andén labelled the cost-cutting measures as “necessary and decisive.” He believes that the changes will help the group have a stronger position and be set up for long-term growth.
announced the commencement of a strategic review in April
Kindred Group’s board of directors announced the commencement of a strategic review in April. One of the catalysts for doing so was a subpar 2022 which saw both revenue and net profit drop year-on-year. Henrik Tjärnström resigned as CEO in May, with Andén temporarily stepping into the role.
The review is still ongoing, and a partial or total sale still in the cards as the company’s board believes that it can maximize shareholder value with a third-party transaction. Andén said that he will provide an update when the board comes to a final decision.
Kindred’s Unibet brand has been operating in the US for some time, offering sports betting and online casinos in certain jurisdictions. It also has operations live in the Canadian province of Ontario.
It’s not just the North American market that the company is withdrawing from. Kindred has joined a number of other operators in leaving Norway following a strict crackdown from the country’s regulator.