Stride Gaming is aiming globally to combat uncertainty over UK regulation, following six-month results that featured a 14 per cent rise in net gaming revenue to £44.9m.
The point of consumption tax on free bets in the UK contributed to adjusted EBITDA falling by one per cent in the six months to February 28, 2018.
A strong balance sheet showed gross cash at £27.9m, compared to £26.2m in the previous period, with net cash at £22.4 million (£19.7m).
Stride saw net gaming revenue up by a quarter on its proprietary platform to £29.7m, as the group sought to move players in this direction, while deposits were up 11 per cent to £79m.
Stride, whose brands include Magical Vegas, Spin and Win and Kitty Bingo, says it awaits UK government guidance ahead of a likely rise in taxation of online gaming to at least 20 per cent, from the existing 15 per cent, to fill the gaop left by the cutting of the minimum FOBTs stake to £2.
“Whilst the UK remains the largest regulated online gaming market in the world it is experiencing greater regulatory and fiscal focus than ever before which is making it a more challenging market to operate in,” Stride stated. “At this stage, it is difficult to predict whether the pending further increases in UK taxation and regulatory compliance will present growth and consolidation opportunities for Stride or not. We await further information and guidance from the Government.
“Meanwhile, the Board will continue to appraise the best growth options for the Group. Our focus will now shift towards accelerating our international growth plans in line with our strategic focus to diversify the business and expand in attractive regulated markets globally. As an agile operator with our own proprietary technology at the core of our business and customer offering, I believe Stride is well placed to adapt, evolve and flourish.”
