Stride Gaming warns first-half revenue will be 5% lower
Stride expects net gaming revenues to have fallen short of expectations in the first half of its trading year as a result of greater disruption arising from fiscal and regulatory changes implemented in the second half of 2018.
Looking forward, Stride told investors there were “encouraging signs” that the impact of these disruptive factors had been largely absorbed and stated that its business model was “adjusting accordingly”.
Whilst Stride does not expect to recover the first half revenue shortfall in the second half, it was “confident” that its strategy of leveraging its infrastructure and proprietary technology to migrate more mass market, recreational bingo and casino customers onto its higher margin proprietary platform was “robust” and will deliver “strong long-term, cash-backed value”.
Chief executive Eitan 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, however, we continue to invest in our proprietary technology, product offering and content which provides us with a strong foundation from which to adapt to these changes.”