Edison Investment Research - Stride Gaming (STR) Stride Gaming - Trading broadly in line

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Edison Investment Research

Victoria Pease

Stride Gaming - Trading broadly in line

Strideâ€™s AGM confirmed that trading for the current financial year has been broadly in line, despite well documented regulatory headwinds. To counterbalance rising gaming taxes and other sector pressures, the group is implementing numerous cost-cutting initiatives, which will be key to hitting our FY19 EBITDA estimate. Looking ahead, we expect growth to resume in FY20 (once many regulatory burdens have been lapped) and we believe Stride will take market share within a disrupted industry. Cash conversion is c 90% and the new payout policy leads to a 15.0% yield in FY19 (including the special dividend). The stock continues to trade at a meaningful discount to peers, at 3.7x EV/EBITDA and 6.5x P/E for CY19e.

06/02/2019 3 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.

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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.

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Analysts

Victoria Pease

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Stride Gaming - Recommended cash offer from Rank

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Stride Gaming - Trading broadly in line

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

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