Stride Gaming sets aside £4m for UKGC fine

Stride Gaming has set aside £4m to pay a forthcoming fine from the UK Gambling Commission, the bingo-led operator announced this morning.

Stride said back in August it was likely to have to pay a “significant financial penalty”, but said payment was “not final” and it was considering its options.

The firm’s stock price dipped 35% on the original announcement and fell a further 7% today as Stride said it had taken legal advice to make a £4m provision for the penalty.

Stride said it anticipated a final decision by the UKGC before the end of the calendar year.

Exact details of Stride’s transgressions were still not revealed.

Stride also this morning provided a trading update, projecting FY18 revenue growth of at least 3.7% to £85m, and a dip in adjusted EBITDA from £20m to £16m.

“This resilient performance has been achieved against a backdrop of more challenging trading conditions, including higher taxation (an effect of £4 million in FY18) and implementing further measures to ensure that Stride continues to maintain high standards in the provision of responsible gaming,” the firm said.

During the period, the Company completed the earn-outs for the Tarco and 8Ball businesses that were acquired in August 2016 and said it was now focused on delivering further operational synergies.

“I am pleased to report that the Group has traded well during the second half of the year despite a number of headwinds impacting the UK online gaming market,” said Eitan Boyd, Stride Gaming CEO.

“Our focus remains on delivering further market share growth in the UK, driven by continued product innovation and increasing player loyalty. This is underpinned by the strength of our proprietary technology as well as our proven business analytics capabilities.

“We have an excellent technology platform as well as a highly experienced team driving the Group forward, and as a result we look forward to the future with confidence.”