Stride Gaming

LN: STR

£95.5m market cap

126p 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

Stride Gaming is a leading UK online gaming operator. During 2018, the company faced a number of regulatory headwinds (rising taxes, regulatory fines etc) but we believe Stride is well positioned to take market share in a disrupted industry. The company has announced an 8p special dividend for FY19 and, going forward, the payout policy will be at least 50% of adjusted net earnings. Stride has confirmed that it is currently reviewing its strategic options, including consolidation possibilities in the market. The company expects to report H119 results in May 2019.

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 4.9 5.9
2018A 89.0 16.1 14.8 19.2 6.6 6.4
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 22/03/2019
Industry outlook

Regulatory burdens are increasing, with POCT on free bets (from 2017) and a rise in remote gaming duty from 15–21% being implemented from April 2019. Operators need to comply with other measures including social responsibility, source of funds, GDPR, AML etc. The recent £7.1m fine for procedural failures from the Gambling Commission is evidence of the stricter regulatory environment.

Last updated on 22/03/2019
Sector
Consumer
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 8.6 1.6 (40.3)
Relative* 8.5 (5.5) (41.7)
52-week high/low 228.0p/83.5p
*% relative to local index
Key management
Eitan Boyd CEO
Ronen Kannor CFO

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