Kindred to boost marketing headcount amid redundancy concerns
Kindred Group has moved to allay concerns that up to 26 marketing roles are at risk of redundancy by setting out plans to add more than 100 new positions as part of its future growth strategy.
Reports have emerged this week that some employees could lose their jobs as the operator restructures its Global Marketing Service (GMS) department, in line with its reorganisation program that has been ongoing throughout 2018 and 2019.
However, when contacted by iGamingBusiness.com about the redundancies, Alexander Westrell, group head of communications at Kindred, said that while some positions are “at risk”, the operator is aiming to create more marketing roles to support its growth aims.
“26 roles are put ‘at risk’ of redundancy, but at the same time we are aiming to add over 100 new marketing roles to facilitate our future growth,” Westrell told iGamingBusiness.com.
“The restructure in GMS is partly done to further increase our proactive stance towards sustainability and compliance across the business. So the 26 roles that are at risk have been urged to apply for the over 100 new roles that have been created.”
The statement comes after Kindred in April reported a year-on-year decline in earnings in the first quarter, despite a rise in revenue.
Revenue for the three months through to March 31, 2019 amounted to £224.4m (€250.3m/$284.4m), up 8.0% on the previous year, but earnings before interest, tax, depreciation and amortisation fell 35.3% to £30.6m, with Kindred noting it had taken an £18.9m hit from its Swedish launch.
At the time, Kindred also reported a 29.2% rise in marketing costs to £53.6m, due in part to higher expenditure on bonuses, and strong uptake in Sweden in January and February. However, bonus spend stabilised later in the quarter, and was lower than 2018 by March.
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