Stride Gaming lowers revenues forecasts as strategic review nears close
Bingo operator says H1 revenues will be 5% lower than expectations thanks to recent regulatory changes
Stride Gaming has warned investors revenues for the six months to 28 February will be some 5% lower than expected thanks to “fiscal and regulatory changes” implemented in H2 2018.
The firm was previously projected to see its revenues dip by around 5% compared with 2018 regardless, according to Edison Group projections.
However, Stride said the impact of the changes had now been largely absorbed and the business model was adjusting accordingly.
The Stride board reiterated its belief in the firm’s strategy of migrating recreational bingo and casino customers onto its higher margin proprietary platform.
Elsewhere, the Board said it expects a strong performance from its ‘Stride Together’ B2B joint venture and was “encouraged” by additional new joint venture opportunities.
The group also upped its investment in its Indian Rummy business, reflecting positive trends in the business.
Eitan Boyd, CEO of Stride Gaming, said: “In common with the rest of the industry, the period to end of February 2019 proved to be unusually busy for the Group.
Trading was testing as we adjusted to the new paradigm of the UK’s current fiscal and regulatory environment, however we continue to invest in our proprietary technology, product offering and content which provides us with a strong foundation from which to adapt to these changes.
Boyd said the firm was well advanced with its strategic review and would make an announcement when appropriate.
The firm will report its results for the six months to 28 February 2019 in May.