Edison Investment Research - Stride Gaming (STR) Stride Gaming - Scale drives core growth

Report

Edison Investment Research

Victoria Pease

Stride Gaming - Scale drives core growth

Stride reported net gaming revenue (NGR) growth of 18% to Â£89.9m in FY17, driven by an impressive 39% organic growth in the core real money gaming (RMG). Adjusted EBITDA of Â£20.2m was slightly above our recently raised estimates. Stride has invested heavily in technology and operational leverage should kick in as acquired customers migrate to the higher-margin proprietary platform. A small investment into the Indian rummy market could also lead to diversified revenue growth. Strong cash flow and Â£17.4m net cash leaves the company well positioned to pay the final Tarco earnout. The stock trades at CY18e 8.2x EV/EBITDA and 12.0x P/E, slightly below peer group averages. Profitability in the core business should offset potential investment losses and our estimates remain largely unchanged.

22/11/2017 6 EN

Underlying

Stride Gaming

Stride Gaming is an online gaming operator in online bingo, slot gaming and social gaming mobile applications. Co. operates a multi-branded multi-platform strategy to complement its own proprietary and acquired software. Co. focuses on the U.K. market for online bingo market and with its social gaming market reaches internationally with a focus on the North American market. Co. owns 105 brands of games, including the online bingo brands Kitty Bingo, Lucky Pants Bingo, Bingo Extra, Jackpot CafA(c) and Jackpot Liner, King Jackpot, together with the online casino brands Spin and Win, Magical Vegas and Big Top.

See profile

JE00BWT5X884 Jersey

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

See profile

Analysts

Victoria Pease

Other Reports on these Companies

EQS Group AG

Form 8.3 - Chelverton UK Dividend Trust plc: Stride Gaming Plc

Chelverton UK Dividend Trust plc (SDVP) Form 8.3 - Chelverton UK Dividend Trust plc: Stride Gaming Plc 24-Jun-2019 / 17:06 GMT/BST Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. FORM 8.3 Â PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the "Code") Â 1.Â KEY INFORMATION Â (a)Â Identity of the person whose positions/dealings are being disclosed: MI Chelverton UK E...

June 24, 2019 June 24, 2019 EN

Edison Investment Research

Stride Gaming - Recommended cash offer from Rank

Rank Group has made a recommended Â£115.3m cash offer for Stride Gaming, which equates to an EV of Â£93.4m. Using the run-rate H119 EBITDA, the deal is valued at c 7.5x EV/EBITDA. The offer of 151p per share is a 29% premium to the previous dayâ€™s closing price. Irrevocable commitments have been received by 61.3% of Strideâ€™s shareholders and completion is anticipated in Q319.

June 3, 2019 June 3, 2019 2 EN

Edison Investment Research

Stride Gaming - Suspension of estimates

For the purposes of the Takeover Code, Edison Investment Research is deemed to be connected with Stride Gaming. Under Rule 20.1 Edison must not include any profit forecast, quantified financial benefits statement, asset valuation or estimate of other figures key to the offer, except to the extent that such forecasts, statements, valuations or estimates have been published prior to the offer period (as defined in the Takeover Code) by an offeror or the offeree company (as appropriate) in accordance with the requirements of the Code. Consequently we have removed our estimates until the Offer Pe...

May 31, 2019 May 31, 2019 2 EN

Basilea Pharmaceutica - Cresemba milestone payments continue to roll in

Basilea Pharmaceutica has announced the triggering of a US$1.25m milestone payment from Pfizer, triggered by sustained strong sales of Cresemba in the Asia-Pacific region and China. This is the second FY24 milestone payment for the region and is incremental to the payment received in March. We note that, according to the latest available data, total in-market sales of Cresemba amounted to US$473m in the 12 months ending December 2023, representing a +26% year-on-year increase. Basilea is preparing to launch its Phase III programme for fosmanogepix, a broad-spectrum antifungal therapy, with the...

May 17, 2024 May 17, 2024 1 EN

Toby Thorrington

Toby Thorrington

AAC Clyde Space - Solid start to the year with further order growth

AAC Clyde Space offers exposure to the fast-growing low Earth orbit space market. A solid start to the year and continued order momentum are encouraging. We also note the internal restructuring to promote delivery of the group’s products and services. We expect this combination to drive an improving performance, albeit within the lumpy nature of the business, in turn improving investor confidence and the stock’s valuation.

May 17, 2024 May 17, 2024 1 EN

Richard Williamson

Richard Williamson

Tinexta - Typical seasonality in Q124

Tinexta’s Q124 results showed good progress in the two divisions that typically demonstrate more consistent (through the year) growth, Cyber Security and Digital Trust, which management expects to deliver higher growth over the next few years. Business Innovation demonstrated its typical seasonality and management therefore remains confident about the outlook for the year.

May 17, 2024 May 17, 2024 1 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Stride Gaming - Scale drives core growth

Form 8.3 - Chelverton UK Dividend Trust plc: Stride Gaming Plc

Stride Gaming - Recommended cash offer from Rank

Stride Gaming - Suspension of estimates

Basilea Pharmaceutica - Cresemba milestone payments continue to roll in

AAC Clyde Space - Solid start to the year with further order growth

Tinexta - Typical seasonality in Q124

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe