The Rank Group has confirmed it is in “advanced discussions” over an all-cash offer for online operator Stride Gaming that values the company at £114.5m, or 151p per share.
Stride, the third-largest online bingo operator in the UK with an 11 per cent market share, had announced earlier in the year that it was examining the possibilities of a sale amid a difficult business environment.
Stride today announced its interim results for the half-year period ended February 28, 2019.
Net gaming revenue was down 13 per cent to £39.03m (£44.9m), adjusted EBITDA fell by 23 per cent to £6.16m (£8m) and adjusted net earnings dropped 29.3 per cent to £5.23m (£7.4m) as regulatory headwinds across the UK affected the group’s performance.
Profit after tax and discontinued operations was up 19.1 per cent to £1.75m (£1.47m), as Stride made a proactive shift towards targeting casual games players.
Eitan Boyd, CEO of Stride Gaming, said: "The group has delivered a resilient performance in the first half of the year despite challenging trading conditions, reflecting the strength of our proprietary technology, as well as the skill and commitment of our team."
