Bingo group Stride Gaming PLC has had a boom in revenues and earnings this year, following its acquisitions of smaller groups 8 Ball and Netboost Media and the Tarco Assets in August. Net gaming revenue for the company has jumped up by 22% to nearly £48m, with yield per player going up by seven percent to £120.
Stride Gaming PLC are behind online bingo brands such as Kitty Bingo and Lucky Pants Bingo, and this year they became the fourth largest online bingo operator in the UK when they took on 8 Ball and Tarco – absorbing 8 Ball brands such as We Want Bingo and Satin Bingo, and Tarco brands including Moon Bingo and Robin Hood Bingo. By acquiring these two smaller groups, Stride Gaming PLC gained over 120,000 players and 96 bingo brands, for a new total of 105 bingo brands.
They’ve seen an increase in funded players, too, with over 70,000 new funded players joining this year alone – a huge 37% increase from 2015. Stride Gaming PLC now owns a 10% share of the UK bingo market, and 25% of the online bingo market.
“We believe that we have never been better placed to exploit the opportunities that exist in our market to deliver value to shareholders and we look to the future with excitement and confidence,” Nigel Payne, a non-executive chairman said.
But Stride are keen to keep growing, and are planning to look for further acquisitions in 2017. “The business has never been in such a strong position to build on its excellent achievements of 2016,” said chief executive Eitan Boyd. “Our focus in 2016/17 will be on integrating these recent acquisitions, continuing our strong organic growth and examining entry into other soft gaming verticals. Looking ahead, we are excited by the outlook for the Group as we build on our goal of being the leading UK based soft gaming company and maximising value for shareholders.”
Even with the UK government’s current review of pre-watershed advertising, Stride are confident in their ability to expand, as most of their advertising is online. They are also focusing on mobile devices, due to the increasing number of bingo players who play using their phones or tablets.
“Mobile devices continue to shape the online gaming industry and operators constantly have to innovate to stay ahead of the curve,” said Eitan Boyd. “Increased regulation, tax and compliance costs will continue to squeeze margins on smaller businesses and present challenges for larger operators. However, it also presents significant opportunities for incumbent and established operators that have significant scale to exploit market opportunities.”
With Stride having such success this year, it’s apparent that their acquisitions were clever decisions. Let’s wait and see if 2017 will be such a prosperous time for the company – perhaps we’ll see even more brand new bingo sites from them?
Sources: SBC News, The Telegraph, City AM, Proactive Investors