Once you consider the moving parts behind these numbers from bingo-focused Stride Gaming (STR), it starts feeling like a full house. The statutory figures were bent out of by the point-of-consumption tax (POCT) introduced in December 2014, the acquisition of InfiApps in July 2015, as well as £3m in contingent remuneration and share-based payments. If adjustments are made to presume the InfiApps purchase had happened at the start of the comparative 2015 period, and that POCT had been levied for both terms, net gaming revenue was up a fifth to £21.6m, while adjusted cash profits were up 29 per cent to £5.6m.
The number of players in its bingo and slot gaming division rose to 60,561, a whopping 92 per cent year-on-year increase thanks mostly to targeted marketing efforts. Chief executive Eitan Boyd says the group, which joined the Alternative Investment Market (Aim) in May last year, boasts a 6 per cent share of the UK bingo market, although he hopes to "reach double digits quite soon". The social gaming division benefited most from the InfiApps deal, demonstrated by the rise in average deposit size from $15.70 (£10.85) to $23.
Analysts at Edison have upgraded their forecasts and now expect adjusted pre-tax profits of £10.7m for the year to August 2016, giving adjusted EPS of 17.7p, compared with £7.2m and 14p in FY2015.
| STRIDE GAMING (STR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 269p | MARKET VALUE: | £138m | |
| TOUCH: | 265-273p | 12-MONTH HIGH: | 323p | LOW: 182p |
| DIVIDEND YIELD: | 0.4% | PE RATIO: | na | |
| NET ASSET VALUE: | 65p* | NET CASH: | £1.9m | |
| Half-year to 29 Feb | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 11.7 | 1.57 | 3.8 | 0.00 |
| 2016 | 21.6 | 0.23 | -0.1 | 1.10 |
| % change | +84 | -86 | -103 | - |
Ex-div: 2 Jun Payment: tbc *Includes intangible assets of £37m, or 72p a share | ||||
