Stride Gaming PLC Pre-close trading update and UKGC update (9281B)

TIDMSTR

RNS Number : 9281B

Stride Gaming PLC

26 September 2018

26 September 2018

Stride Gaming plc

("Stride Gaming" or the "Company" or the "Group")

Pre-close trading update and UKGC update

Stride Gaming plc (AIM: STR), a leading online gaming operator, provides the following trading update ahead of its Final Results for the year ended 31 August 2018 (the "Period"). The Group intends to announce its Final Results on 21 November 2018.

Trading update

The Group is pleased to report that it has traded well and in line with the Board's expectations during the second half of the financial year. As a result, the Board expects to report Net Gaming Revenue for FY18 of not less than GBP85m (FY17: GBP82m) and Adjusted EBITDA for FY18 of not less than GBP16m (FY17: GBP20m). This resilient performance has been achieved against a backdrop of more challenging trading conditions, including higher taxation (an effect of GBP4 million in FY18) and implementing further measures to ensure that Stride continues to maintain high standards in the provision of responsible gaming.

During the Period, the Company completed the earnouts for the Tarco and 8Ball businesses that were acquired in August 2016 and subsequently successfully integrated into the Group. The Group is now focused on delivering further operational synergies in the year ahead.

Stride Together, the Group's B2B division, has performed well with Aspers Casino achieving continued strong growth. We are exploring additional partnerships in the UK and globally.

Gambling Commission Review

On 2 August 2018, the Company announced that one of the Group's subsidiaries ("the Licensee") had received notice from the Gambling Commission of Great Britain (the "UKGC") of its intention to require the Licensee to pay a financial penalty following a review of the manner in which the Licensee has historically carried on its licensed activities. Since this announcement, the Board has made further extensive representations to the UKGC, and anticipates that a decision by the UKGC on a financial penalty will be made before the end of the calendar year.

On the basis of legal advice received to date, the Board has concluded that it should make a provision for its financial liability against the proposed penalty. A GBP4 million provision will therefore be recorded in the results for the year ended 31 August 2018.

Eitan Boyd, Chief Executive of Stride Gaming, commented:

"I am pleased to report that the Group has traded well during the second half of the year despite a number of headwinds impacting the UK online gaming market. "Our focus remains on delivering further market share growth in the UK, driven by continued product innovation and increasing player loyalty. This is underpinned by the strength of our proprietary technology as well as our proven business analytics capabilities.

"We have an excellent technology platform as well as a highly experienced team driving the Group forward, and as a result we look forward to the future with confidence."

Enquiries:

 
 Stride Gaming plc 
  Eitan Boyd (Chief Executive Officer) 
  Ronen Kannor (Chief Financial Officer)    [phone] 
  www.stridegaming.com                       6080 
 Investec Bank plc (Nominated Adviser 
  and Broker) 
  Chris Treneman 
  Ed Thomas                                 [phone] 
  David Anderson                             5970 
 Hudson Sandler (Financial PR) 
  Alex Brennan 
  Hattie O'Reilly                           [phone] 
  Bertie Berger                              4133 
 

About Stride Gaming plc:

Stride Gaming plc, listed on AIM, is a leading online gaming operator. The Company operates a multi-branded strategy, using a combination of its proprietary and licensed software to provide an online gaming offering.

Stride Gaming's real money offering is presently focused on the UK market, where it is licensed and only operates from the regulated jurisdictions of the UK and Alderney. With a diverse portfolio of more than 170 brands, Stride Gaming is the third largest online bingo operator in the UK, and has over 25% share of the UK online bingo landscape.

Stride Gaming operates a partnership platform, Stride Together, through which the company licenses its proprietary platform to gaming operators, media partners and retailers in the UK and globally, enabling them to create an online presence for their customers and enabling Stride to penetrate new verticals both within UK markets and overseas territories.

Further information on the Group is available at: www.stridegaming.com.

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September 26, 2018 02:01 ET (06:01 GMT)