Stride Gaming has recorded a provision of £4m relating to an anticipated penalty imposed by the UK’s Gambling Commission.
In its latest financial update, the online gambling operator reported that it has recently made “extensive representations” to the UKGC, after the firm was served with its notice of a fine in early August following on from a review of the company’s historical licensed activities.
Expecting a decision before the end of the calendar year, Stride included the provision in its end of year results up to August 31, 2018, based on legal advice received.
In its latest financial report, Stride said it expects to record full-year trading in line with expectations, with net gaming revenue for FY18 (up to August 31, 2018) of no less than £85m, up from £82m a year earlier, with adjusted EBITDA at a minimum of £16m (FY17: £20m).
Stride said that its performance was resilient in spite of challenging conditions, including higher taxation – the equivalent of £4m in FY18 – and the implementation of further responsible gaming measures.
During the period, Stride completed earnouts for the Tarco and 8Ball and the focus is now on delivering further operational synergies in the year ahead. Stride Together, the group's B2B division, was reported to have “performed well” with Aspers Casino achieving “continued strong growth”. Stride is exploring additional partnerships in the UK and globally.
Final full-year results will be announced on November 21, 2018.
Eitan Boyd, CEO of Stride Gaming, said: "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.
"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."
