Stride Gaming considers sale of company
Stride Gaming has launched a strategic review of its operations that may culminate in the sale of the business, though is yet to receive an offer for the business.
The London-listed bingo operator said in response to a story in The Times newspaper over the weekend that its board is confident the business can manage fiscal and regulatory pressures, and capitalise on growth opportunities in the UK.
However, as part of its strategic review, Stride said that it is considering a number of options, of which a potential sale is just one. As a result it is open to offers, and has appointed Investec as its financial advisor to assist with all aspects of the review.
Other routes open to Stride Gaming include a more aggressive organic expansion strategy in both the UK and an international basis, as well as expanding the business through acquisitions.
Stride Gaming intends to update the market on its strategic review ahead of announcing its interim results for the period ending February 28, 2019.
The statement comes after Stride Gaming revealed at its annual general meeting last week it is retain a focus on controlling costs, despite performing in line with expectations in what non-executive chairman Nigel Payne said were “challenging trading conditions”.
Speaking at the AGM, Payne emphasised cost control and efficiencies as ongoing core focus areas for the group moving forward.
Payne also spoke about plans to migrate more customers to its higher-margin proprietary platform, which generated revenue of £60.5m (€69.1m/$78.2m) in the 12 months to the end of August, accounting for 68% of total turnover.
Overall, net gaming revenue amounted to £89m, up 8.7% on the previous year, while player deposits also increased by 6.8% to £157m.
This update boosted the operator, which in November was hit with a £7.1m fine from the UK Gambling Commission in relation to compliance failures at its Daub Alderney subsidiary. Stride Gaming described the punishment as “excessive and disproportionate”, having already set aside £4m for the anticipated fine.