Online gaming operator Stride Gaming has provided guidance revealing that it expects net gaming revenues to be five per cent lower than expected as a result of disruption caused by “fiscal and regulatory changes” in the second half of 2018.
In a trading update, the group – which has brands including Magical Vegas, Spin and Win and King Jack Casino – revealed the downgrade, for the six-month period running to February 28, 2019, while also stating that it sees encouraging signs that disruptive factors have now been largely absorbed.
The operator said it is confident the strategy of leveraging the group's infrastructure and proprietary technology to migrate more mass market, recreational bingo and casino customers onto its higher margin proprietary platform is robust and will deliver strong long term, cash backed value for shareholders.
Stride also stated that as a result of “encouraging growth trends” in its Indian Rummy business, the board has increased its technology and marketing investment in Passion Gaming, in which it has a 51 per cent share. The board expects to report incremental costs of around £400,000 for this part of the group.
Eitan Boyd, CEO of Stride Gaming, said: "In common with the rest of the industry, the period to end of February 2019 proved to be unusually busy for the group. Trading was testing as we adjusted to the new paradigm of the UK's current fiscal and regulatory environment, however we continue to invest in our proprietary technology, product offering and content which provides us with a strong foundation from which to adapt to these changes.
“We are now well advanced with our review of strategic options to maximise value for shareholders. We will make a future announcement when appropriate."
