Stride posts revenue and profit surge

Stride Gaming, a UK-based international gaming company, has posted record revenue growth in the six months up to February this year. The company’s net gaming revenue (NGR) touched £44.9 million ( $60.1 million) –  up by 14 per cent than the same period last year. The company attributed this achievement to the success of its real-money gaming business.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was down slightly to £8.7m, while adjusted earning remained level at just over £8m.

Profit after tax and discontinued operations rocketed by 114 per cent from a loss of £10.3m last year to a positive figure of £1.5m in the first half of the current year.

As a result, basic profit per share jumped 113 per cent from a loss of 15.3 pence to a plus of two pence, with Stride proposing a final dividend of 1.3 pence per share.

In a statement, Stride said: “Driven by continued growth in our core real-money gaming business, and underpinned by further investment in Stride’s customer offering, proprietary technology and people, the group has delivered solid financial results with NGR up 14 per cent to £44.9m.

“After adjusting the prior period cost of sales to reflect the new point-of-consumption tax, which became effective on August 1, 2017, like-for-like adjusted EBITDA also increased by 19 per cent to £8.7m.

“Whilst the UK remains the largest regulated online gaming market in the world it is experiencing greater regulatory and fiscal focus than ever before which is making it a more challenging market to operate in.

“At this stage, it is difficult to predict whether the pending further increases in UK taxation and regulatory compliance will present growth and consolidation opportunities for Stride or not.

“Meanwhile, the board will continue to appraise the best growth options for the group.

“Our focus will now shift towards accelerating our international growth plans in line with our strategic focus to diversify the business and expand in attractive regulated markets globally.

“As an agile operator with our own proprietary technology at the core of our business and customer offering, I believe Stride is well placed to adapt, evolve and flourish.”

Source: iGamingBusiness