Proactiveinvestors United Kingdom Stride Gaming PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Stride Gaming PLC RSS feed en Sat, 20 Apr 2019 10:01:15 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Form 8.3 - Stride Gaming Plc ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190410115907_14036254/ Wed, 10 Apr 2019 11:59:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190410115907_14036254/ <![CDATA[News - Stride Gaming weak as online gaming operator warns first-half revenue will be lower than expected ]]> https://www.proactiveinvestors.co.uk/companies/news/218255/stride-gaming-weak-as-online-gaming-operator-warns-first-half-revenue-will-be-lower-than-expected-218255.html Stride Gaming PLC (LON:STR) saw its shares drop on Tuesday after the online gaming operator warned that its first-half revenue will be lower than expected due to recently implemented regulatory changes.

In an update on current trading, the AIM-listed company said it expects to report net gaming revenue for the six months to the end of February 5% lower than expected due to a disruption from fiscal and regulatory changes in the second half of 2018.

READ: Stride Gaming says it could be sold as strategic review is launched

However, the group added, it does now see signs the impact has been largely absorbed and its business model is adjusting accordingly.

It said, whilst it does not expect to recover the first half revenue shortfall through trading in the second half, it is confident its strategy of migrating customers its higher margin proprietary platform will deliver strong long term, cash-backed value for shareholders.

The company also said it expects to report a strong performance from its Stride Together joint venture and is encouraged by further new partnership opportunities.

Eitan Boyd, Stride Gaming’s CEO commented: “Trading was testing as we adjusted to the new paradigm of the UK's current fiscal and regulatory environment, however we continue to invest in our proprietary technology, product offering and content which provides us with a strong foundation from which to adapt to these changes.”

He added: “We are now well advanced with our review of strategic options to maximise value for shareholders. We will make a future announcement when appropriate."

The group said it will report its results for the six months to 28 February 2019 in May.

In late afternoon trading, shares in Stride Gaming were down 9% at 117p.

]]>
Tue, 09 Apr 2019 15:33:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218255/stride-gaming-weak-as-online-gaming-operator-warns-first-half-revenue-will-be-lower-than-expected-218255.html
<![CDATA[RNS press release - Trading update ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190409070011_14033370/ Tue, 09 Apr 2019 07:00:11 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190409070011_14033370/ <![CDATA[RNS press release - Form 8.3 - swisspartners Marcuard Heritage AG ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190311104520_13997384/ Mon, 11 Mar 2019 10:45:20 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190311104520_13997384/ <![CDATA[RNS press release - Form 8.3 - Stride Gaming plc ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190301135418_13987636/ Fri, 01 Mar 2019 13:54:18 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190301135418_13987636/ <![CDATA[RNS press release - Form 8.3 - Stride Gaming plc - Amend ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190301070003_13986263/ Fri, 01 Mar 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190301070003_13986263/ <![CDATA[RNS press release - Form 8.3 - Stride Gaming plc ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190228164900_13986048/ Thu, 28 Feb 2019 16:49:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190228164900_13986048/ <![CDATA[RNS press release - Form 8.3 - TTE CONCERT PARTY: STRIDE GAMING PLC ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190226180508_13982639/ Tue, 26 Feb 2019 18:05:08 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190226180508_13982639/ <![CDATA[RNS press release - Form 8 (OPD) - Stride Gaming ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190222160003_13979316/ Fri, 22 Feb 2019 16:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190222160003_13979316/ <![CDATA[RNS press release - Form 8.3 - Stride Gaming plc ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190212152448_13966908/ Tue, 12 Feb 2019 15:24:48 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190212152448_13966908/ <![CDATA[RNS press release - Maitland Institutional Services Ltd - Form 8.3 - Stride Gaming plc ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/PRNRNS_201902111022PR_NEWS_UKDISCLO_0089/ Mon, 11 Feb 2019 15:22:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/PRNRNS_201902111022PR_NEWS_UKDISCLO_0089/ <![CDATA[RNS press release - Form 8.3 - Stride Gaming plc ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190211123315_13965113/ Mon, 11 Feb 2019 12:33:15 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190211123315_13965113/ <![CDATA[RNS press release - Form 8.3 - Stride Gaming Plc ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190211122052_13965106/ Mon, 11 Feb 2019 12:20:52 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190211122052_13965106/ <![CDATA[News - Stride Gaming says it could be sold as strategic review is launched ]]> https://www.proactiveinvestors.co.uk/companies/news/214334/stride-gaming-says-it-could-be-sold-as-strategic-review-is-launched-214334.html Stride Gaming PLC (LON:STR) is reviewing all strategic options, it said as it responded to recent media reports.

Specifically, the company clarified that it was fined by the UK Gambling Commission once during 2018, not twice as implied in reports.

It is now reviewing its options, which include taking a more aggressive organic expansion strategy, expanding through acquisition or a potential sale of the company.

READ: Stride fined £7.1mln by UK gambling commission

Investec has been hired to assist with the review. The company expects to report back to investors ahead of reporting its interim results statement, for the six months that will end on 28 February.

Stride will now be considered to be in an offer period under stock market rules.

“The board reserves the right to alter or terminate the review process at any time and if it does so it will make an announcement as appropriate,” Stride said.

It added: “The board also reserves the right to reject any approach or terminate discussions with any interested party at any time.”

]]>
Mon, 11 Feb 2019 07:40:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214334/stride-gaming-says-it-could-be-sold-as-strategic-review-is-launched-214334.html
<![CDATA[RNS press release - Response to press speculation ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190211070005_13964074/ Mon, 11 Feb 2019 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190211070005_13964074/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190206113002_13960442/ Wed, 06 Feb 2019 11:30:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190206113002_13960442/ <![CDATA[RNS press release - AGM statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190206070002_13959513/ Wed, 06 Feb 2019 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190206070002_13959513/ <![CDATA[RNS press release - Notice of AGM and posting of Report & Accounts ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190204070006_13956332/ Mon, 04 Feb 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190204070006_13956332/ <![CDATA[RNS press release - Notice of AGM and posting of Report & Accounts ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190108152449_13927886/ Tue, 08 Jan 2019 15:24:49 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20190108152449_13927886/ <![CDATA[RNS press release - Audited Results for the year ended 31 August 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20181121070004_13874301/ Wed, 21 Nov 2018 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20181121070004_13874301/ <![CDATA[RNS press release - UKGC update ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20181113123738_13865268/ Tue, 13 Nov 2018 12:37:38 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20181113123738_13865268/ <![CDATA[RNS press release - Pre-close trading update and UKGC update ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180926070004_13804537/ Wed, 26 Sep 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180926070004_13804537/ <![CDATA[RNS press release - Appointment of Nomad and broker ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180824070005_13766903/ Fri, 24 Aug 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180824070005_13766903/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180802090538_13741279/ Thu, 02 Aug 2018 09:05:38 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180802090538_13741279/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180802090028_13741269/ Thu, 02 Aug 2018 09:00:28 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180802090028_13741269/ <![CDATA[RNS press release - Gambling Commission Notice ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180802070025_13740655/ Thu, 02 Aug 2018 07:00:25 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180802070025_13740655/ <![CDATA[RNS press release - Director/PDMR Dealing ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180531070006_13660747/ Thu, 31 May 2018 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180531070006_13660747/ <![CDATA[RNS press release - Interim Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180523070009_13651289/ Wed, 23 May 2018 07:00:09 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180523070009_13651289/ <![CDATA[RNS press release - Tarco acquisition - earn-out and Issue of Equity ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180424150004_13616831/ Tue, 24 Apr 2018 15:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180424150004_13616831/ <![CDATA[RNS press release - Notice of Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180410131331_13598986/ Tue, 10 Apr 2018 13:13:31 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180410131331_13598986/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180201133607_13518479/ Thu, 01 Feb 2018 13:36:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180201133607_13518479/ <![CDATA[RNS press release - AGM Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180201070007_13517203/ Thu, 01 Feb 2018 07:00:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180201070007_13517203/ <![CDATA[RNS press release - Notice of AGM and posting of Report & Accounts ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180105172507_13487515/ Fri, 05 Jan 2018 17:25:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180105172507_13487515/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180102173444_13482921/ Tue, 02 Jan 2018 17:34:44 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20180102173444_13482921/ <![CDATA[RNS press release - Blocklisting Application ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20171215070004_13466583/ Fri, 15 Dec 2017 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20171215070004_13466583/ <![CDATA[RNS press release - Stride Gaming acquires 51% stake in Passion Gaming ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20171121070101_13438277/ Tue, 21 Nov 2017 07:01:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20171121070101_13438277/ <![CDATA[RNS press release - Audited Results for the year ended 31 August 2017 ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20171121070006_13438201/ Tue, 21 Nov 2017 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20171121070006_13438201/ <![CDATA[Media files - Stride Gaming PLC a dominant player in the multi-brand online bingo market ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/8327/stride-gaming-plc-a-dominant-player-in-the-multi-brand-online-bingo-market-8327.html Fri, 03 Nov 2017 14:50:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/8327/stride-gaming-plc-a-dominant-player-in-the-multi-brand-online-bingo-market-8327.html <![CDATA[News - Stride Gaming says performance in year just ended was at the upper end ]]> https://www.proactiveinvestors.co.uk/companies/news/184114/stride-gaming-says-performance-in-year-just-ended-was-at-the-upper-end-184114.html Stride Gaming PLC (LON:STR) expects results for the year just ended to be at the upper end of market expectations.

The online bingo sites operator said the strong performance of the first half of the year to the end of August had continued into the second half.

"2017 has been a successful year for Stride Gaming. With exceptional underlying organic growth across our Real Money Gaming vertical, together with an excellent trading performance from 8ball and Tarco acquired in August of last year, and the launch of our new B2B vertical Stride Together, I am delighted with the current shape and future prospects of the business,” said Eitan Boyd, chief executive of Stride Gaming.

Acquisitions hitting the spot

On the subject of 8ball, the company said its financial performance had been in line with expectations, achieving unaudited adjusted underlying earnings (EBITDA) of £4.18mln, as a result of which the final earn-out consideration relating to its acquisition of the company has been confirmed at £13.1mln. As previo;usly agreed, £9.06mln of this consideration will be satisfied through the issue of shares – 4.12mln in total.

In addition, the company said the final earn-out consideration payable in respect of its acquisition of the social gaming operation, InfiApps Limited, in August 2015, has been agreed at US$1,200,000, to be satisfied in cash.

"We are delighted with the performance of 8ball over the period. Its integration into the wider group has begun successfully and we are already seeing synergies materialise,” Boyd said.

"8ball's performance since acquisition has clearly demonstrated our capability to acquire and integrate quality businesses, in line with the Group's growth strategy," he added.

"One of the great strengths of Stride is our robust proprietary platform which provides great flexibility, speed to market and in-depth analysis to provide a better user experience and more profitable delivery of service. As we grow in size we are seeing the benefits of this being increasingly realised and we look forward to the future with confidence," Boyd declared.

READ: Stride Gaming has 10% of the online bingo market but it wants more finnCap initiates coverage with ‘buy’ recommendation

Broker finnCap has initiated coverage of Stride with a ‘buy’ recommendation and a target price of 264p; the shares currently trade at around 222.5p, though the shares will likely open higher on this morning’s trading update.

“We initiate near Stride’s all-time valuation low, believing that regulatory concerns and recent weakness in social gaming [SoG] have resulted in Stride trading at discount to its peers, despite stronger growth prospects, limited downside from SoG and a robust position ahead of regulatory changes,” the broker said.

While the SoG side of the business has underwhelmed, the real money gaming (RMG) arm has been growing at roughly triple the average for the sector as a whole.

The broker expects this out-performance to continue thanks to Stride’s proprietary RMG brands and the cross-selling opportunities.

Point of consumption tax (POCT) changes may actually benefit the group

“From August onwards, a new tax regime was imposed on all UK online bingo operators. We believe that Stride is strongly positioned to withstand these new costs given its scale and profitability (c.10% market share and 22% last reported EBITDA margin). The same cannot be said for sub-scale operators, meaning POCT2 may enable further market share growth,” finnCap said.

The broker likes the cross selling opportunities as Stride continues on its buy & build strategy.

In the first half of the financial year just ended EBITDA per player was 85% higher on Stride’s proprietary brands compared to the acquired Tarco/8Ball brands.

“As such, we see an opportunity to grow profit by introducing proprietary brands to Tarco/8Ball players,” the broker said.

]]>
Mon, 18 Sep 2017 07:38:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/184114/stride-gaming-says-performance-in-year-just-ended-was-at-the-upper-end-184114.html
<![CDATA[RNS press release - 8ball & InfiApps: agreed Earnout & Issue of Equity ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20170918070101_13365427/ Mon, 18 Sep 2017 07:01:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20170918070101_13365427/ <![CDATA[RNS press release - Pre-close Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20170918070005_13365349/ Mon, 18 Sep 2017 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20170918070005_13365349/ <![CDATA[News - Stride Gaming has 10% of the online bingo market but it wants more ]]> https://www.proactiveinvestors.co.uk/companies/news/172392/ Strong organic growth in 2016 coupled with a few acquisitions means Stride Gaming PLC (LON:STR) is now one of the largest online bingo operators in the UK with a 10% market share.

That puts Stride – which has 105 brands now – at number four in the list of online UK bingo operators but it believes it can take more of the market over the coming 12 months or so.

“Stride Gaming is well positioned to capitalise on the opportunities in the sector and to increase our market share through strong organic growth and selective acquisitions,” said chairman Nigel Payne.

The confidence comes on the back of a decent year of trading for the company that was in line with management expectations.

The “strong” performance of the real money gaming business more than offset slightly weaker-than-expected trading in the social gaming division.

As previously mentioned, much of that performance is down to “encouraging” organic growth, while the acquisitions of 8Ball, Netboost Media and Tarco last summer are also settling in well.

“Our focus in 2017 is on embedding these acquisitions into the enlarged group, maximising synergies and ensuring the underlying organic business remains robust,” Payne said.

Performance so far in 2017 has been strong in the core business, but a cloud hangs over the social gaming division, with its future under review after a slide in revenues. Despite this fly in the ointment, managment remains confident of meeting full-year expectations; when all is said and done, the social gaming arm is a bit of a sideshow, accounting for just 11% of revenues.

“The disappointing performance [of social gaming] is in part we believe as a result of changing dynamics in the social gaming markets, which are maturing and are leading to higher acquisition costs and lower lifetime values of players,” suggested chairman Nigel Payne.

The new kids

Stride doubled its market share with the acquisitions of certain Tarco Limited assets, Netboost Media Limited and 8Ball Games Limited last July.

While it ‘only’ has 10% of the overall market, the enlarged group’s 105 brands mean it has a quarter of the online UK bingo market by number of sites.

Like Stride, Tarco and 8Ball are both online bingo operators with 3% and 2% of the market respectively and also bring with them a combined 123,000 active players

Netboost is a slightly different proposition; it’s a marketing business that services the Tarco assets.

It shelled out up to £40.2mln for the Tarco assets and Netboost, and it bought 8Ball in a deal that could be worth up to £30mln.

The new businesses were funded in part by a share placing at 225p a pop which raised £27mln, with the remainder being satisfied by the issue of new shares and from Stride’s existing cash resources.

The acquisitions are expected to enhance earnings immediately, even before synergies kick in. Once the customary earn-out period passes, during which previous ownership is rewarded should the acquired businesses hit certain targets, Stride envisages achieving cost synergies of around £2.5mln and revenue synergies of around £3mln.

WATCH: CEO Eitan Boyd speaks to Proactive’s Andrew Scott The taxman cometh

Stride sees as an opportunity what many of the UK market’s smaller brethren see as a massive impediment in the form of the point of consumption (POC) tax that has been introduced in the UK.

The tax is likely to put the squeeze on the marketing spend of the smaller operators, impairing the ability of these minnows to snare new customers.

Stride hopes to be able to continue spending sensibly on acquiring new players. In fact it hopes and expects the process to become much cheaper than it is today.

CEO Boyd reckons as much as 20% of the market will be up for grabs as a result of the POC levy.

Stride Gaming is also eyeing expansion opportunities in Europe

The company said it is actively examining rolling out its existing product into new regulated territories, particularly in Europe, where it sees significant growth opportunities.

“We are extremely pleased with the financial results from the first half [of fiscal 2017]. Our key focus for the second half is to maximise the potential of the Real Money Gaming vertical through strengthening our core business; integrating the acquisitions of 8ball, Netboost Media and Tarco assets; and increasing our market share of the UK bingo market,” said Eitan Boyd, chief executive officer of Stride.

“The second half will see the launch of the joint venture with Aspers and we will look to build our B2B vertical into a substantial revenue generating operation. We will also examine entry into other soft gaming verticals and territories,” he added.

A full-house with the brokers

“We believe that the recent acquisitions are transformational to Stride Gaming, catapulting the group into the number four player in the structurally attractive UK online bingo-led market,” said house broker Shore Capital.

“Through its scale, multi-brand strategy, proprietary platform and track record Stride appears uniquely positioned to exploit the favourable dynamics in bingo-led market; especially from further likely regulatory developments that will likely squeeze marketing budgets across the industry.

“We therefore see scope for Stride to increase its market share further, both organically and through corporate activity.”

Shore reckons Stride is on track to report underlying earnings of £20.4mln on revenues of £89mln in the 2017 financial year, rising to £21.2mln on revenues of £103mln in 2018.

The broker reckons the stock is worth 360p, which implies plenty of room for growth given its current price of 228p or so.

]]>
Tue, 27 Jun 2017 07:35:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/172392/
<![CDATA[RNS press release - Award and issuance of ordinary shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20170606072317_13250256/ Tue, 06 Jun 2017 07:23:17 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20170606072317_13250256/ <![CDATA[News - Stride's online bingo business clickety-clicking ]]> https://www.proactiveinvestors.co.uk/companies/news/178461/stride-s-online-bingo-business-clickety-clicking-178461.html Acquisitive online bingo operator Stride Gaming PLC (LON:STR) had some impressive numbers for the market on Tuesday Morning.

Presenting its half-year results on a pro forma basis – as if the recently acquired companies had been part of the business a year earlier – the company posted a 20% year-on-year increase in adjusted underlying earnings (EBITDA) on a 21%  increase in net gaming revenue.

Stride said it continued to make progress in the integration of 8Ball, Netboost Media and the Tarco assets acquired in August 2016.

Current trading is strong and Stride remains confident of meeting full-year expectations.

Non-core social gaming business under review after slide in revenues

It was not all chips with gravy for the online gaming company, however, with the performance of the social gaming business weaker than expected.

Stride has put an improvement plan in place for this part of the business, and it said the early signs have been encouraging, but the company took a £10.2mln non-cash write down on its social gaming interests, which resulted in a reported loss of £10.3mln, versus a reported loss of £0.1mln the year before.

Strides described the social gaming arm as “non-material” – it accounts for just 11% of revenues - and said it was conducting a review of the business.

“The disappointing performance [of social gaming] is in part we believe as a result of changing dynamics in the social gaming markets, which are maturing and are leading to higher acquisition costs and lower lifetime values of players,” suggested chairman Nigel Payne.

Net gaming revenue for the whole group in the six months to the end of February was £44.01mln versus £36.50mln the year before.

Eyes down for strong growth in the core business

Performance in what the company calls its “real money gaming” (as opposed to social gaming) bingo-led business was strong.

This part of the business accounts for 89% of group revenues, and the half-year period saw yield per player rise 8.5% to £127 from £117 the year before, which Stride said demonstrates a continued improvement in engagement and the ability to make money from the growing number of players.

Social net gaming revenue, however, was down 24% to £4.7mln from £6.2mln.

Adjusted EBITDA, which excludes the one-off impairment for the social gaming business, rose to £9.64mln from £8.03mln.

The interim dividend was raised to 1.2p from 1.1p.

Cash at the end of the reporting period was healthy at £19.2mln, albeit down from £21.1mln a year earlier.

Stride Gaming eyeing expansion opportunities in Europe

The company said it is actively examining rolling out its existing product into new regulated territories, particularly in Europe, where it sees significant growth opportunities.

“We are extremely pleased with the financial results from the first half. Our key focus for the second half is to maximise the potential of the Real Money Gaming vertical through strengthening our core business; integrating the acquisitions of 8ball, Netboost Media and Tarco assets; and increasing our market share of the UK bingo market,” said Eitan Boyd, chief executive officer of Stride.

“The second half will see the launch of the joint venture with Aspers and we will look to build our B2B vertical into a substantial revenue generating operation. We will also examine entry into other soft gaming verticals and territories,” he added.

 

]]>
Tue, 30 May 2017 07:38:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/178461/stride-s-online-bingo-business-clickety-clicking-178461.html
<![CDATA[RNS press release - Interim Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20170530070011_13241412/ Tue, 30 May 2017 07:00:11 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20170530070011_13241412/ <![CDATA[News - Stride Gaming shares advance as it strikes first B2B joint venture ]]> https://www.proactiveinvestors.co.uk/companies/news/178390/stride-gaming-shares-advance-as-it-strikes-first-b2b-joint-venture-178390.html Shares in Stride Gaming PLC (LON:STR) nudged higher as it struck a first business-to-business (B2B) joint venture with Aspers Group - one of the fastest growing gaming companies in the UK.

The announcement coincided with its launch of Stride Together - its new B2B division.

The new business will see the firm license its platform to gaming operators, media partners and retailers around the world, allowing them to start an online presence for customers.

Aspers Group has revenues of over £100mln

The Aspers Group has grown its annual revenue to over £100mln in short order. Since opening its first Casino in Newcastle in 2005, it now has three further casinos in Northampton, Milton Keynes and London, and has expansion plans in Bournemouth and Southampton.

The Stride deal will allow players to visit one of the casinos or play on a mobile or other digital device.

Stride eyeing pool of strategic partners..

Stride says its medium and long term goals for the B2B business are to have a pool of strategic partners leveraging off its proprietary platform.

"Stride Together will also target media groups and gaming operators seeking extra revenue streams through soft gaming content," it said.

"The company will tailor its product to meet its clients' brands to facilitate the uniqueness of the gaming experience both operationally and technically," it added.

Eitan Boyd, chief executive at Stride Gaming, said: "We will be highly selective with whom we partner with and will look to work with established gaming operators, media partners and retailers both in the UK and overseas.

"We are delighted to have launched our first Stride Together JV with Aspers. We see a great deal of value in their brand."

Shares added1.97% to 232.5p.

]]>
Fri, 26 May 2017 12:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/178390/stride-gaming-shares-advance-as-it-strikes-first-b2b-joint-venture-178390.html
<![CDATA[RNS press release - Launch of Stride Together - new B2B division ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20170526101813_13239975/ Fri, 26 May 2017 10:18:13 +0100 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20170526101813_13239975/ <![CDATA[RNS press release - Change of Adviser ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20170313070009_13155455/ Mon, 13 Mar 2017 07:00:09 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20170313070009_13155455/ <![CDATA[RNS press release - Notice of AGM and posting of Report & Accounts ]]> https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20161230120001_013082048/ Fri, 30 Dec 2016 12:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/956/LSE20161230120001_013082048/ <![CDATA[Media files - Stride Gaming PLC enjoys 'fantastic' period ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/6472/stride-gaming-plc-enjoys-fantastic-period-6472.html Mon, 28 Nov 2016 09:15:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/6472/stride-gaming-plc-enjoys-fantastic-period-6472.html