Stride walking tall with £7m trading update

Stride walking tall with £7m trading update

Monday, June 22, 2015 Totally Gaming
Eitan Boyd has identified a number of reasons for Stride's success

Stride Gaming has continued its fantastic 2015 by telling shareholders that it expects adjusted earnings for the year to be at least £7m (€9.8m/$11.1m).

The bingo operator was the subject of huge interest when it launched on the Alternative Investment Market (AIM) in May, with its share price shooting up by 30 per cent - from an initial 132p to 171.5p - by the end of its first day as it also reported that it had raised £11.2m of funding.

Stride today (Monday) issued a trading update in which it said adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the year to August 31, 2015 would not be less than £7m, with chief executive Eitan Boyd telling TotallyGaming.com that its improved content offering and execution of strategy is reaping dividends.

“Stride Gaming is trading ahead of management expectations due to several reasons,” said Boyd, founder of the Globalcom network. “These include that the company has introduced extra gaming content. It has introduced six proprietary new games which has increased over all game wagering and reduced loyalties.

“The company has also been producing better margins. Both distribution and administration costs have reduced in percentage terms as the company scales up. Additionally, the company has had effective marketing campaigns producing good CPA levels with strong ROIs.”

Last month, Boyd told TotallyGaming.com that the owner of brands such as Kitty Bingo, Lucky Pants Bingo and King Jackpot hoped to lead the way as a niche bingo operative as the industry giants focused on cross-vertical growth.

The company reported net gaming revenues of £11.7m and EBITDA of almost £3.6m during the six months to February 28. Stride’s share price was at 201.5p on Monday afternoon, up from 196.5p at close on Friday.
 

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