Stride Gaming considering putting itself up for sale

11 February 2019

(Sharecast News) - AIM-listed gambling company Stride Gaming said on Monday that it is considering putting itself up for sale.
Responding to recent press reports, the group said it was reviewing its strategic options in order to maximise value for its shareholders.

It is considering a more aggressive UK and international organic expansion strategy and expansion of its operations through an acquisition in the UK and/or international markets.

In addition, Stride said it is considering a sale of the company, although it is not currently considering any offer proposals.

Stride also clarified that it was fined once by the Gambling Commission last year, as announced on 13 November 2018, and not twice as inferred in recent press speculation.

"The group has a clear focus on winning and retaining mass market, recreational customers onto its bingo and casino sites. Stride continues to leverage its infrastructure and proprietary technology to migrate more customers onto the group's higher margin proprietary platform and drive cost synergies across the business.

"The board believes the group will continue to be highly cash generative and the board remains committed to its revised dividend policy to distribute at least 50% of adjusted net earnings in dividends."

Stride said it expects to report on the review ahead of its interim results.

<em>Shore Capital</em> analyst Greg Johnson said he sees "significant merit" in combining Stride's gaming assets, including its proprietary platform, with <strong>Rank</strong>, effectively doubling its online revenues.

"Including likely material synergies, a tie-up with Stride would leave Rank in a stronger position to meet ongoing regulatory headwinds, transform the earnings profile of the enlarged group, as well as being potentially materially accretive," he said.

At 1400 GMT, Stride shares were up 6.3% to 110p, while Rank shares were up 2.1% at 164.80p.