Stride Gaming

LN: STR

£113m market cap

149p last close

Stride Gaming is a leading online gaming operator in the UK. It uses its proprietary and purchased software to provide online bingo and slot gaming. It was formed in 2012 and only operates in regulated real money gaming markets.

Investment summary

On 31 May 2019, Rank Group made a recommended £115.3m cash offer for Stride Gaming, which equates to an EV of £93.4m. Using the run-rate H119 EBITDA, the deal is valued at c 7.5x EV/EBITDA. The offer of 151p per share is a 29% premium to the previous day’s closing price. Completion is anticipated in Q319.

Y/E Aug
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 89.9 20.2 18.9 25.8 5.8 7.0
2018A 89.0 16.1 14.8 19.2 7.8 7.5
2019E N/A N/A N/A N/A N/A N/A
2020E N/A N/A N/A N/A N/A N/A
Last updated on 08/08/2019
Industry outlook

For the purposes of the Takeover Code, Edison Investment Research is deemed to be connected with Stride Gaming. Under Rule 20.1 Edison must not include any profit forecast, quantified financial benefits statement, asset valuation or estimate of other figures key to the offer, except to the extent that such forecasts, statements, valuations or estimates have been published prior to the offer period (as defined in the Takeover Code) by an offeror or the offeree company (as appropriate) in accordance with the requirements of the Code.
Consequently we have removed our estimates until the offer period ends.

Last updated on 08/08/2019
Sector
Consumer
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 0.0 26.8 61.1
Relative* 4.7 28.4 73.3
52-week high/low 149.5p/92.5p
*% relative to local index
Key management
Eitan Boyd CEO
Ronen Kannor CFO

Content on Stride Gaming