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Stride Gaming Share Discussion Threads
Showing 251 to 274 of 275 messages
|They weren't the only ones Czar - from the Telegraph article Shore Capital have a target of £3.62 with the following commentary:
Shore Capital added that the stock currently trades at around 7.4 times is 2017 earnings compared to the rest of the sector, which typically trades a premium of 10 times forecast earnings. Shore sees the potential for Stride to trade at a premium to the wider sector based on the group’s “expertise, technology and the significant opportunities to build a sizeable business”.
On a separate point I noticed on the GVC statement today that whilst their general performance was good - 15% organic at constant currency their gaming/other NGR revenue line which includes Foxy Bingo was down 6% (3% constant currency).
From the statement:
'Currency weakness and a competitive bingo market led to an NGR decline in Games labels of 6% to EUR103.7m'.
I wonder if Stride is hurting competitors at these growth rates?|
|Chief executive Eitan Boyd says he is delighted by organic growth across the underlying business.
Now the UK’s fourth largest bingo operator, Boyd says the group is well on the way for becoming a “£500mln plus company”.
That equates to an £8 share price.|
|Quite a bit of press coverage today, highlights of 30% organic growth and target of £500m market cap (3x the current business).
|This is a very very good company and I can see several years of upgraded forecasts which continue to be beaten, soft gaming is a goldmine.|
|19 September 2016
Stride Gaming PLC Trading Statement
The Group is pleased to report that trading in the second half of the financial year has been very strong. As a result, the Board now expects its results to be ahead of market expectations, with Net Gaming Revenue for the year ended 31 August 2016 to be not less than GBP47m (2015: GBP27.8m) and EBITDA to be not less than GBP12.3m (2015: GBP7.3m), notwithstanding that the prior year contained only nine months of the Point of Consumption tax.
|Alphabeta we should get a trading update soon and hopefully they made the £11m. Current year is hard to guess but with acquisitions should be something around £15m to £17m so single digit pe for sensational growth, starting to look very attractive. Bought a bit with a view to topping up as things unfold. Soft gaming is a great space to be in, very good people and a sensible model, it should be a real winner over the next couple of years IMHO.|
|On a separate point I would be interested on thoughts around how the remaining acquisition payments will be financed. If 2017 EBITDA was due to be £13m and then the max earnout is if the acquired companies do EBITDA of £9m then we have £22m available less some tax. This compares to them needing £20m in cash and £20m in shares. With the payments in shares bit does anyone have some information on how this will work? I.e. is this shares issued to the current owners and if so at what price? Is it a price based on the time of the acquisitions or the price prevailing at the time of earnout? Or, is it saying Stride will do another issue (placing?) to complete the earnout payments?|
|Morningstar has forecasts of £12m EBITDA and £11m PBT for 2016 and for 2017 £13m EBITDA and £12m PBT. They are still clearly pre the recent acquisitions so at the very least they haven't seen some revised forecasts yet.
Found this link with quite a bit of detail on the acquisitions and strategy which I found helpful. This has been on my radar for a while and IMO it came down to trusting the management to execute which when weighing up their previous track record of building up cos and achieving successful exits swung it for me.
|Thanks jambo, have you seen any research with the forecasts for this year and next yet? It must be looking pretty good and I doubt these will be the last deals they do. Soft gaming is a great business IMHO.|
|"Online bingo consolidator Stride Gaming has made two further add-on acquisitions that are set to enhance its profitability and double its share of the UK online bingo market to 10%. Cost savings of £2.5m a year are envisaged after the earn- out is completed and the acquisitions should be earnings enhancing in the first full year of ownership. The total cost of the acquisitions could be up to £70.2m, with the initial £30.2m payable in cash and shares. Stride will pay up to £22m more for Tarco, where Stride chief executive Eitan Boyd and fellow director Darren Sims are shareholders, based on 7.5 times EBITDA for the 12 months to December 2017, minus the initial consideration. Tarco’s most recent annualised EBITDA was £2.5m."
Update from Northland Capital, taken from Research Tree|
|Closing of Placing - HTTP://www.investegate.co.uk/stride-gaming-plc--str-/rns/closing-of-placing/201607290925386541F/
... A total of 12,000,000 Placing Shares have been placed at a Placing Price of 225 pence per Placing Share (the "Placing Price"), raising gross proceeds of £27.0 million...|
|Impressive deals, this should be a real winner.|
|Exceptional year to come and a maiden 1.1p dividend, great increase in revenues but PBT is lower.|
I'd hardly call it a bit of nosy buying. There were 5 trades totaling £1.47 million. Odd how it never shifted the share price upwards when sometimes a small volume of buying or selling can move the share price several percentage points in either direction.|
|Results due out on Monday, perhaps a bit of nosey buying ahead of that?|
|One year on the stock market, anniversary was today.|
|I've been trying to find out that myself czar.
Did anyone notice the huge buys a week last Tuesday? I wonder what's going on.|
|Anyone know when results are due?|
|Initiation by Edison...
Bingo-led gambling and social gaming operator - HTTP://www.edisoninvestmentresearch.com/research/report/stride-gaming|
|Had the opportunity to go though results in more detail now. Some considerations:
- PBT dropped as a result of costs related to AIM listing and acquisitions. These are one-off costs.
- if you exclude these one-off costs, PBT grew to GBP3.9 million from GBP0.8 million. It appears to me that the profit after tax figure of £0.4M that is in the headline results includes the one-off costs. Does that make sense?
- acquisitions so far have been earnings enhancing according to management.
- they may be able to buy other gaming companies on the cheap as a result of the introduction of POC tax.
- they are looking to expand internationally (Italy). Most of InfiApps revenue already comes from North America. I'd assume there is no POC in both countries?
- size of the pie is growing; not shrinking: global social gaming segment is expected to grow from $5.4 billion in 2012 to $17.4 billion in 2019.
- most of their shares are held by institutions (something like 94% if I'm not wrong); and they don't appear to have sold any following this morning's results; share price fell on just a few sells today (possibly from PIs).
If anything that could disappoint me in this update is the lack of news on dividends (I was expecting them to pay divi from year 1). Maybe at this profit level it would not make sense yet.
Other question mark is how they plan to fund future acquisitions? (is 7.4M cash they have in the bank enough? don't think so)? They'll probably have to increase borrowing from shareholders like they did for the InfiApps buy.
Taking all this into consideration I'm still holding on to my shares. Don't plan to fight the trend though if share price deteriorates further, or if institutions decide to dump their holdings.|
|Sold the last of my holding here, headline results read well but it's profits that count. Increased admin, exceptionals and share based payments have eaten up the increase in EBITDA. Rating too high for me now though I expect more growth to come from an acquisition. Also talk of a progressive dividend but that looks unlikely for a while. Thought hard and long about holding but it was my scepticism of Foriegn co's that probably swayed it. GLAH.|
|And how has it reduced from £3.9m before tax to £0.4m after?|