Search Share Prices
Stride Gaming turns a corner as 'real-money' pushes revenues ahead
AIM-listed online games operator Stride Gaming clawed its way into the black over the last six months, as its "real-money" model pushed revenue and profits ahead in the first half of its trading year.
Net gaming revenue jumped 14% year-on-year to £44.9m and, while adjusted earnings before interest, tax, depreciation and amortisation was down 1% to £8.7m, adjusted earnings remained flat at £8m.
Stride's pre-tax profits soared 114% higher to £1.46m from a loss of £10.3m a year earlier and basic profits per share rocketed 113% to 2p from a loss of 15.3p per share in the corresponding period.
Stride revealed a 'strong balance sheet', with gross cash of £27.9m on 28 February and net cash of £22.4m.
Stride said, "Driven by continued growth in our core real-money gaming business, and underpinned by further investment in Stride's customer offering, proprietary technology and people, the group has delivered solid financial results with NGR up 14% to £44.9m."
Stride warned investors that, "at this stage", it was difficult for the firm to predict whether pending increases in UK tax rates and regulatory compliance would present growth and consolidation opportunities and that it was awaiting further information and guidance from the Government.
"There is no doubt that the UK is becoming a more scrutinised and challenging market to operate in, and we will continue to invest, adapt and evolve to ensure we offer customers the safest, securest and most enjoyable online gaming entertainment experience," Stride said.
The group proposed an 8% higher dividend of 1.3p per ordinary share.
As of 1050 BST, Stride shares had lost 8.91% to 184p.