Sign up USA
Proactive Investors - Run By Investors For Investors

Stride Gaming Plc - Eye Catching Metrics

Stride Gaming (LON:STR) is a leading online online gaming operator, working within the regulated markets, with a top 4 presence in the UK bingo market. Stride recently reported FY Aug 2017 results which confirmed strong operating progress, cashflows, and balance sheet.
Stride Gaming Plc - Eye Catching Metrics

The UK bingo market continues to grow at mid-high single digits, and within that Stride has been gaining market share rapidly. The company is led by a management team with a proven track record of shareholder value creation (see GlobalCom or Wink Bingo for examples).

We know that industry changes including the Point-of-Consumption tax have seen weaker players exiting the segment or downsizing.

But even compared to the stronger competitors, Stride wields an advantage. Below is a comparison with Jackpotjoy. We can see that Jackpotjoy achieves very similar EBITDA margins to Stride. And the total Distribution Cost for Jackpotjoy is similar to Stride, at around 45% of revenues (this cost includes software licence fees, processing, royalties, hosting, and marketing cost).

Because Stride uses proprietary software platforms there is less licence fee expense, meaning more of the distribution expense can be allocated to player acquisition (marketing). So, whilst both companies have similar overall distribution cost and similar EBITDA margins, the organic revenue growth is stronger in the case of Stride .

We believe that these dynamics remain in place over the coming years.

Full report is available via Capital Network website


Register here to be notified of future STR Company articles
View full STR profile View Profile

Stride Gaming PLC Timeline

Related Researches

no_picture_pai.jpg
July 19 2017

The BOS GLOBAL share price rose from 3p to 19p during the 6 months Nov 2016 – May 2017, but has since fallen back to 8.6p. Whilst volatility is not unusual as a tech company progresses from start-up to commercialisation, we felt it’s a good time to review events.

no_picture_pai.jpg
September 15 2017

YEAR-TO-DATE PROGRESSING STRONGLY

Corero Network Security Plc (LON:CNS) H1 results release (14/092017) showed strong progress, with revenue up 51% for the flagship SmartWall product. Perhaps even more importantly the recurring revenue element for SmartWall was up 177%. This reinforces the growth profile going forward because licence fee income grows cumulatively as new customers are added. 

We believe these results demonstrate that the company has essentially completed its transition from a software generalist to a DDoS protection specialist, and that the SmartWall DDoS protection product continues rapidly gaining traction in the market.

In this report we review the progress of the group. We also revisit some of the fundamental drivers, and how the DDoS protection market functions. We argue that SmartWall’s real-time threat mitigation represents a disruptive new presence in the space.

KEY INVESTMENT THEMES

Among the main attractions of Corero Network Security Plc (LON:CNS) as an investment:

• A highly differentiated product in SmartWall which offers game-changing performance compared with anything else in the market place. • Substantial headroom for further market share gains, within a continuously growing end market for DDoS protection. • An expanding range of channels to market, and technology partners including Juniper Networks, Gigamon, and McAfee to extend Corero Network Security Plc (LON:CNS) market reach. • Support of a shareholder base that includes specialist institutions such as Miton and Herald Investment Management, and also the Chairman and principal shareholder Jens Montanana.

In this report we examine some of these themes in more detail.

INVESTMENT CONCLUSION

The shares have gained 81% since the successful fund raising in April. Still, looking forward we believe the company could reach revenues of $50m in 3-5 years. This would imply a market cap of £115m based on peer-group multiples (e.g. Radware, RDWR:NSQ), with no further fundraising required in our view, or 4x upside from the current level. If Corero continues to deliver on milestones, there is still everything to play for here for investors.
 

no_picture_pai.jpg
July 11 2017

Corero Network Security (CNS.LON) provides protection against Distributed Denial-of-Service (DDoS) attacks, through its SmartWall Threat Defence System. The largest customer groups are Internet Service Providers (ISPs) and hosting service providers. The SmartWall system is differentiated from its peers by its ability to apply a DDoS mitigation solution in real-time, reducing costly network downtime. The DDoS threat remains a growing issue, and this report we present a snapshot of the market growth for DDoS protection. 

Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use