The online bingo and slots company has acquired a controlling stake in Indian company Passion Gaming for US$3.75m.
Companies: Stride Gaming
Stride Gaming (LON: STR) has released two RNS statements this morning outlining the Group's audited full-year results and the details of its 51% stake acquisition of Passion Gaming.
The mobile gaming group reported FY17 Revenues up 18% to £89.9m and Adjusted EBITDA up 24% to £20.2m, while the total dividend for the full year will likely be 2.7p subject to shareholder approval, slightly up from the 2.5p issued in 2016.
Real money deposits from its online bingo and slots players also grew 25% to £147m.
CEO of Stride Gaming Eitan Boyd said:
"2017 has been a year of significant progress for Stride Gaming during which the Group has delivered outstanding growth in its core Real Money Gaming business. This has been driven by our scale and proprietary platform, as well as the highly successful acquisitions of 8Ball, Netboost Media and the Tarco Assets in August 2016."
According to Statista the online gambling market is expanding at a rapid pace, growing from US$37.91 bn in 2015 to a forecast US$59.8 bn in 2020.
The Group also today announced its strategic acquisition of a 51% stake in Indian online gaming company Passion Gaming for US$3.75m.
Commenting on the move into the world's second most populous country, Eitan Boyd also said:
"We are delighted to announce this investment which gives Stride Gaming a highly attractive and strategic yet low-risk entry to a rapidly growing and legalised market with enormous potential. We have been monitoring the Indian market for some time as we see strong dynamics in the current environment as well as long-term growth potential."
Stride has the right to acquire the remaining 49% of Passion Gaming from the existing shareholders over a three to five year period based on future performance.
Shares in STR were up 3%, continuing the stock's six-month rally from 208p per share.
Management said trading since the new financial year begun in September has started "very well" and the Board looks to the future "with a high degree of confidence and enthusiasm."
STR listed in May 2015 at 177p and has grown to today's current trading price of 264p, an increase of 49%.
Currently, the Group has a Market Cap of £185m and trades at a 12-month forecast PE ratio of 13x. Consensus forecasts Group Revenues will grow from the £89.9m reported today for FY17 to c. £102m in FY18.
