Online gambling operator Stride Gaming said it expected to post lower annual earnings amid ‘challenging’ trading conditions characterised by higher taxes and stricter gambling rules.

Adjusted Ebitda for the year through August was expected to fall to not less than £16m, which would represent a 20% decline from the £20m earned on-year.

Revenue was expected to rise to £85m, up from £82m.

‘This resilient performance has been achieved against a backdrop of more challenging trading conditions, including higher taxation and implementing further measures to ensure that Stride continues to maintain high standards in the provision of responsible gaming,’ the company said.

Stride also said it would record a £4m provision related to an expected financial penalty imposed by UK regulators.

A decision on the penalty from the UK Gambling Commission was expected by the end of the calendar year, the company said.