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Stride is game to try out strategic review
Posted on Monday, 11 February 2019 15:56
Stride Gaming, the UK operator of proprietary and licensed software for online gambling, has hired Investec to help advise on a strategic review of options ranging from a sale of the company to carrying out acquisitions. In the statement issued today, the company announced the board remains confident in the online bingo and casino games platform’s ability “to manage ongoing fiscal and regulatory market pressures”. However, in order to take advantage of growth opportunities in the current “dynamic UK market”, it has decided to look further into organic and inorganic expansion, both at home and abroad. In addition, Stride will look into whether or not to take part in “potential industry consolidation” through a sale, though there is no guarantee an offer will be made for the company, nor as to terms, should the board go down this route. The review is aimed at winning and retaining mass market, recreational customers onto its online bingo and casino sites and attracting these users to its higher margin platform. Stride also sought to clarify recent media reports: the operator stated it was fined once by the Gambling Commission in 2018, as announced in November 2018, and not twice as reported in the press. The company operates partnership platform Stride Together, through which it licenses its software that gives gaming operators, media associates and retailers in the UK and globally an online presence for customers. According to the annual report, Stride is the third-largest online operator in the UK bingo-led market, although its diverse portfolio of over 150 brands also include banners like Magical Vegas and Big Top. Its online operation using in-house developed and purchased software to provide online gaming accounted for 68.0 per cent of all revenue in the year ended 31st August 2018, while non-proprietary activities made up the balance. © Zephus Ltd