Stride Gaming (STR)

Business description

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 and a social gaming mobile app. It was formed in 2012 and only operates in regulated real money gaming markets.

Y/E Aug Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2016A 47.8 12.3 11.3 20.3 10.8 7.8
2017A 89.9 20.2 18.9 25.8 8.5 10.3
2018E 98.6 19.2 17.0 20.2 10.8 9.4
2019E 110.3 23.0 20.3 23.9 9.2 8.0

Last updated on 21/03/2018

Investment summary

Stride Gaming is a leading UK online gaming operator. The company is achieving strong organic growth in real-money gaming and now has a market share of 12%. The Aspers Casino partnership has had an encouraging start and Stride is well positioned to keep gaining market share. Its key differentiating factor is the high-performing proprietary platform and we expect underlying margin expansion as customers migrate from acquired businesses (Tarco and 8Ball).

Last updated on 06/04/2018

Industry outlook

H2 Gambling Capital estimates that the UK bingo-led market generates approximately £800m in gross gaming revenue (or £600-650m net gaming revenues). Market growth of c 7% pa is being driven by slots and mobile usage. The extension of the UK 15% POC tax from net to gross RMG revenue is in our forecasts, with Stride's first payments starting in October 2017.

Last updated on 06/04/2018

Key management

Eitan Boyd, CEO
Ronen Kannor, CFO

Company address

Unit 450
Highgate Studios
53-79 Highgate Road
United Kingdom
+44 (0)20 7284 6080
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