Kindred Group initiated a strategic review in April to reduce costs, potentially leading to a full or partial sale of the business.
As part of this ongoing review, the company has announced its exit from the North American market.
The withdrawal process will commence immediately and aims to be completed within six months, subject to regulatory approval.
The decision to exit North America will allow Kindred to reallocate financial and tech resources to its existing core markets, enhancing its ability to capitalize on market potential and gain market share.
Kindred has a presence in various U.S. states, including Pennsylvania, New Jersey, Virginia, Arizona, and Washington State, as well as in Ontario, Canada, through its Unibet brand.
Additionally, as part of the strategic review, Kindred will cut more than 300 jobs across the organization, including North America and consultant positions, next year.
This restructuring aims to create a leaner and more efficient business focused on selective growth initiatives, with expected savings of approximately £40.0 million (€46.2 million/$50.8 million) in conjunction with the North American exit.
The reallocation of financial and tech resources will support initiatives in core markets, including the expansion of hyper-local casino brands and the development of exclusive content.
Interim CEO Nils Andén stated, “The cost reduction actions announced today are both necessary and decisive.
This puts us in a stronger position to secure long-term growth for Kindred across our locally regulated core markets.”
Andén has been serving as interim CEO since Henrik Tjärnström resigned in May. Tjärnström had initiated cost-saving plans earlier in the year due to a decline in revenue and net profit in the 2022 financial year.
While the strategic review is ongoing, Andén hinted at the possibility of a full or partial sale, emphasizing that the board believes shareholder value could be maximized through a third-party transaction.
Further updates regarding strategic alternatives will be provided when the board of directors makes final decisions.
In addition to exiting North America, Kindred is also withdrawing from the Norwegian market, following a long-standing battle with Norway’s regulator, Lotteritilsynet.
This decision is expected to be completed by the end of the year, marking the end of a dispute that began in 2019 when the regulator ordered Kindred subsidiary Trannel to cease operations.
After several legal developments, Kindred decided to pull out of Norway in June 2023 following a court ruling affirming Lotteritilsynet’s cease and desist order.