Stride pivots to international expansion in face of growing UK regulatory pressure
Stride chairman Nigel Payne warns of a “fundamental increase in the cost of doing business in the UK
Stride Gaming this morning pledged to pivot towards a more international growth plan in the face of ever-growing regulatory pressures in the UK.
Speaking after the firm’s H1 results, group chairman Nigel Payne highlighted a “fundamental increase in the cost of doing business in the UK,” thanks to things like the bonus tax, the proposed increase in RGD, and the tightening of regulatory controls.
Payne added: “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.
“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.”
As a result, Payne said Stride “will now shift towards accelerating our international growth plans”.
“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,” he added.
The comments come after a strong set of interim results for the bingo-led operator, with a 14% rise in net gaming revenue to £44.9m for the six months to February 28.
Real money gaming NGR on Stride’s proprietary platform grew 25% to £29.7m while NGR from non-proprietary platforms slipped 2% to £15.1m in line with Group’s strategy to migrate players onto the in-house platform.
Adjusted EBITDA dipped 1% to £8.7 million, although when adjusted for the new UK point of consumption tax on free bets, EBITDA actually increased by 19%.
“Driven by continued growth in our core RMG business, and underpinned by further investment in Stride’s customer offering, proprietary technology and people, the Group has delivered solid financial results,” said Payne.