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Stride Gaming’s Revenue Increases at a Fast Pace
By Brodey Sheppard - September 08, 2016
Stride Gaming may be new to the UK online bingo industry, but it is quickly growing to become one of the strongest players in the market. Just recently, the online gaming company announced its first dividend along with a 21 percent revenue increase for the six months leading to 29 February 2016.
If you are planning to invest in online gaming, consider Stride Gaming. At the moment, its shares trade at twice the level at which they were first issued to the public. Moreover, stakeholders can now enjoy some income as the board held its vow to start paying a dividend.
Great Figures for Stride Gaming
After Stride Gaming weighed in with a 21 percent increase in net gaming revenue to £21.6 million, the stakeholders will get 1.1p per share in June. The increase which came six months to 29 February since the shares were floated, increased operating profits (EBITDA) by 29 percent to £5.6 million. At the end of the period, the company sat on £9.9 million in cash.
More people have been playing on all new bingo sites under Stride Gaming. The strong operational performance can be credited to the number of bingo players nearly doubling up to 60,561. The yield per person remained high at an average of £114.
Stride Gaming chief executive Eitan Boyd mentioned that the group was positioned to bring “exceptional results” for the entire year. He also said that they are looking at a “very exciting” future. Stride Gaming is currently valued at £263 million. It is the company’s goal to increase its value to £400 - £500 million within five years of floating its shares on Aim. Given the fact that the group’s value is more than half of its goal within one year after listing, it is well ahead of its goal.
Stride Gaming’s Progressive Dividend Policy
With the announcement of the company’s revenue increase, it is safe to say that the group can generate cash. In line with this, Stride Gaming has declared a progressive dividend policy. Boyd also hopes that this move will enable the stock to be a source of income funds.
Boyd said, “With organic and acquisition-led growth it should be a good one for the growth funds too.”
Stride Gaming strategically went into acquisition deals that delivered organic growth. After purchasing InfiApps, the online gaming conglomerate was able to expand its reach towards the area of mobile social gaming. Meanwhile, the company gained popular brands Jackpot Café, Jackpot Liner and King Jackpot when it acquired the assets and trade of Table Top Entertainment.
Expect to see more bingo sites with excellent software because Stride Gaming is strengthening its technological base through the acquisition of Nextec Software Inc. The propriety gaming platform will allow the company to venture into new territories as well as optimise its sites for its customers.
Boyd shared, “In the past we’ve had a platform where we didn’t own the customers and a company where we didn’t own the platform – now we own everything from start to finish.”
About Stride Gaming
Stride Gaming was founded in 2012 after Eitan Boyd and Darren Sims led the sale of Globalcom Limited, now known as Dragonfish. Boyd and Sims sold Globalcom and Wink Bingo to 888 Holdings Plc for USD42 million and £60 million respectively. Operating in regulated markets, Stride Gaming provide online bingo and other gaming and social activities to players. The company also manages gaming software companies Daub Alderney and Spacebar Media Limited. Some of its popular bingo sites include Lucky Pants Bingo and Kitty Bingo.