Stride enjoys revenue and profit growth in first half

Stride Gaming has cited the ongoing success of its real-money gaming business as the main reason behind year-on-year revenue and profit growth in the first half.

Net gaming revenue (NGR) in the six months to February 28, 2018, amounted to £44.9m (€51.3m/$60.1m), up 14% on the corresponding period in the previous year.

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% 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% 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% 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% 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.”

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