Annual Report 2017

Our vision is to be a leading international gaming company, underpinned by superior talent and technology.

Annual report and financial statements 2017

Download report

Highlights

Financial highlights

Net gaming revenue (“NGR”) £’000 £89,923 +18%
Adjusted EBITDA2 £’000 £20,249 +24%
Adjusted earnings2 £’000 £18,508 +29%
Dividend per share pence 2.7p +8%

Read additional highlights

  • Real Money Gaming NGR from in-house proprietary platform up 39% to £48.6 million (2016: reported £34.9 million)
  • Real Money Gaming NGR from third-party non-proprietary platform up 16% to £33.1 million (2016: pro-forma £28.6 million)
  • Strong balance sheet with gross cash at period end of £26.2 million (2016: £21.1 million)
  • Social gaming NGR down 37% to £8.1 million (2016: reported £12.8 million)
  • Impairment of £9.9 million (2016: £Nil) recognised in the period reflecting a weaker outlook for Social Gaming

Operational highlights

Deposits £m £147 +26%
Yield per player4 £147 +29%
Funded players3 146,000 -10%
Mobile and touch devices % of the GGR5 66% +18%

Read additional highlights

  • Real Money Gaming acquisitions of the Tarco Assets and 8Ball delivered strong earnings with enhancing synergies; current year adjusted EBITDA was up 62% and 101% respectively, from prior year unaudited pro-forma adjusted EBITDA
  • Launched 17 new side games and 29 casino and bingo sites
  • Established Stride Together, a new B2B product, and first joint venture signed with Aspers Group Limited
  • Post-period-end strategic controlling investment of $3.75 million in Passion Gaming, a Rummy-focused online gaming business operating across India

Download highlights

Footnotes

  1. The financial and operational information shown for the prior year is shown on a pro-forma basis to show both periods on a like-for-like basis. That is, as if the acquisitions of 8Ball, Netboost Media and Tarco Assets had taken place at the start of the twelve-month comparative period. A reconciliation from the prior year reported figures to the 2016 pro-forma figures is included in the Chief Financial Officer’s review.
  2. Adjusted earnings and adjusted EBITDA exclude income or expenses that relate to exceptional items and non-cash share-based charges. A reconciliation between the current year’s reported figures and the prior year’s pro-forma figures to Adjusted earnings is shown in the Chief Financial Officer’s review.
  3. Funded player means an active player who has made a deposit with his own funds within the last three months of the Year.
  4. Yield per player means the total net cash in the last three months of the year divided by the number of funded players at the end of the year.
  5. GGR means gross gaming revenue, being total bets placed by players less winnings paid to them.

At a glance

Leading online gaming operator

The Company operates a multi-branded strategy, using a combination of its proprietary and non-proprietary licensed software to provide online bingo, casino and slot gaming and a social gaming mobile application.

Our products

  • Online RMG bingo is a multiplayer pool‑based game, which is a risk‑free model
  • Large number of casino and slot sites
  • Social Casino, which is an app‑based technology

Composition of revenue 2017

54%
RMG – proprietary

37%
RMG – non‑proprietary

9%
RMG – proprietary

Multi-brand

The Company owns 143 brands including the online bingo brands Kitty Bingo, Lucky Pants Bingo, Bingo Extra, Jackpot Café, Jackpot Liner and King Jackpot, together with the online casino brands Spin and Win, Magical Vegas and Big Top.

Aspers Big Top Bingo Extra Jackpot Café Jackpot Liner Booty Bingo Kitty Bingo Lucky Pants Bingo Magical Vegas Spin and Win Robin Hood Bingo King Jackpot Love Your Bingo Moon Games Regal Wins Give Back Bingo Lucky VIP
Download at a glance

Vision and strategy

Our vision is to be a leading international online gaming company

To be a leading online game operator
  1. Focus on our core

    Continue to build scale and grow market share in both the UK bingo and casino markets

  2. Diversify product offering

    Enter into new verticals such as lottery-style games, Rummy, instant wins and scratch cards

  3. New markets

    Extend brands and products to new attractive markets outside of the UK

Investment in proprietary platform
Investment in our team
Compliance with regulation
Value for shareholders
Download strategy

Review of 2017

Continuing to build momentum

Stride Gaming’s scale, technological edge and multi-brand strategy means that we are very well positioned to continue to grow and take market share.

Nigel Payne
Chairman
21 November 2017

Download statement

Clear growth strategy

We are confident of delivering further success in the year ahead and continued progress against our growth strategy.

Eitan Boyd
Chief Executive Officer
21 November 2017

Download statement

Strong organic growth

Significant improvements in player engagement and monetisation across the Group’s brands helped deliver a strong overall performance.

Ronen Kannor
Chief Financial Officer
21 November 2017

Download statement

Market share

Increased market share

Stride Gaming has continued to grow its market share in its core UK bingo-led online gaming market. The Group is currently the third largest online bingo operator in the UK with a 12% market share.

Stride Gaming continues to expand its multi-brand strategy and today operates over 140 sites, equating to approximately one in four online bingo brands in the UK. The Group’s scale, technological edge and multi-brand strategy mean that it is very well positioned to continue to grow and take market share despite external industry pressures.

Online gaming market overview

  • UK remains the world’s largest real money bingo market, with mobile continuing to drive growth
  • Stride operates over 140 sites, which is approximately one in four brands in the UK
  • UK online casino market is three times larger than online bingo1
  • Multi-brand strategy provides differentiated offering in slots segment both in B2C and B2B
  • UK is a highly regulated market
  • Increased regulation presents opportunities given Stride’s scale and proprietary technology advantage

Stride is now the third largest online operator with a 12% share2. The estimated market size is £600 million.

  1. September 2016 UKGC report shows casino market worth £2.4 billion in GGR
  2. Stride Group management estimates
Download markets