London-based online gaming company Stride Gaming has revealed an 18% year-on-year rise in its net gaming revenues for the third quarter of 2017.
In its full financial report of 2017, the company posted net gaming revenues of £89.9m, beating the £76.4m reported during the 2016 financial year.
Adjusted EBITDA grew by 24% year-on-year, rising from £16.3m in 2016 to £20.4m during 2017. Adjusted earnings also increased during the period, jumping to £18.5m from its previous 2016 total of £14.3m.
Deposits received by the company during the financial year were up by 25.6% rising to £147m from the £117m reported in 2016.
However it wasn’t all increases for Stride, which reported a whopping £26.7m loss compared to the previously positive profit figure of £194,000 reported during financial year 2016.
Despite this significant loss, Eltan Boyd, CEO of Stride Gaming remained upbeat about the company’s future saying: “2017 has been a year of significant progress for Stride Gaming during which the group has delivered outstanding growth in its core Real Money Gaming business. This has been driven by our scale and proprietary platform, as well as the highly successful acquisitions of 8Ball, Netboost Media and the Tarco Assets in August 2016.
“Throughout the year we have continued to invest in our people, products and proprietary technology which together underpin our vision of developing as a leading global online gaming operator.
“The online gaming industry remains fast-growing and dynamic. As an operator with scale, proprietary technology and operational momentum we are confident of delivering further success in the year ahead and continued progress against our growth strategy.”
At the same time, Stride Gaming has also announced the agreement of a deal to purchase a 51% stake in Indian gaming company Passion Gaming, for an initial cash fee of $3.75m.
Passion Gaming was established in 2015 and is focused on the Indian skills gaming market, with a particular emphasis on Rummy.
As part of the deal, Stride Gaming have the right to acquire the remaining 49% share in Passion Gaming from the existing shareholders over a three- to five-year period, using a combination of cash and shares based on the future financial performance of Passion Gaming.
In a statement announcing the deal, Bobby Garg, Co-Founder and CEO of Passion Gaming said: “We are delighted to partner with Stride Gaming who are widely recognised as a leading operator and platform provider to the online gaming industry, with an enviable growth track record. Our vision is to provide exhilarating, safe and secure skill gaming to players in India.
“Working with Stride Gaming places us in a strong position to bring international standards to rapidly growing Indian gaming market as we continue to focus on player acquisition, engagement and loyalty.”
Stride Gaming CEO Eltan Boyd added: “We have been monitoring the Indian market for some time as we see strong dynamics in the current environment as well as long-term growth potential. Our UK market experience and proprietary technology advantage, combined with Passion Gaming’s market positioning and operational focus creates a highly attractive proposition.”