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NEWS 9 April 2019

Stride Gaming lowers revenue expectations; CEO updates on strategic review

By Tim Poole

Stride Gaming has lowered expectations for its six-month financial results ending 28 February 2019.

The board expects net gaming revenue to be approximately 5% lower than initially projected, reflecting "greater disruption from fiscal and regulatory changes implemented in the second half of 2018."

Stride does suggest the impact of these factors has already been "largely absorbed" and has confidence in its long-term strategy going forward.

CEO Eitan Boyd has also promised to update investors on Stride’s recent strategic review "when appropriate."

In February, Stride confirmed press speculation it is considering a sale of the company.

Boyd said: "In common with the rest of the industry, the period to end of February 2019 proved to be unusually busy for the group. Trading was testing as we adjusted to the new paradigm of the UK’s current fiscal and regulatory environment.

"We are now well advanced with our review of strategic options to maximise value for shareholders. We will make a future announcement when appropriate."

Stride is currently trading at a share price of £1.14 ($1.49), almost half its value in May 2018. Share valuation peaked at £3.00 in September 2015 but has not reached those heights since.

In November, meanwhile, Stride accepted a £7m fine handed to subsidiary Daub Alderney by the Gambling Commission.

RELATED TAGS: Online | Mergers & Acquisitions | Financial | Casino
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