Gaming Realms confident after strong first half

11th Sep 2024 14:51

(Sharecast News) - Gaming Realms reported strong first-half financial growth on Wednesday, driven by a 28% increase in core content licensing revenue.

The AIM-traded firm said that for the six months ended 30 June, it saw total revenue rise by 18% to £13.6m, while adjusted EBITDA grew 21% to £5.8m.

Excluding brand licensing, adjusted EBITDA surged 46%, demonstrating significant operational leverage.

Profit before tax also increased by 51%, reaching £3.5m.

The company said licensing revenues saw an 18% rise to £11.5m, with content licensing alone contributing £11.2m, a 28% increase.

However, brand licensing revenue dropped 67%, following two key deals in the same period last year.

Despite that, Gaming Realms ended the period with a 28% increase in net cash, totaling £9.6m.

Operationally, the company said it made significant strides, launching partnerships with 22 new operators across North America and Europe, including FanDuel, Fanatics, and Atlantic Lottery Corporation in North America, and Solverde, DAZN, and Livescore in Europe.

Gaming Realms also secured an iGaming Supplier License in West Virginia and signed a distribution deal with Playtech, creating new opportunities in Switzerland, the US, and other regulated markets.

Additionally, the company expanded its game portfolio to 82 titles, introducing popular new releases such as Slingo Capital Gains and Slingo Gold Cash.

Since the end of the first half, Gaming Realms said it had continued its momentum by expanding into new markets, including West Virginia and British Columbia, and launching content with major operators like Bet365, Virgin Bet, and BetMGM.

Licensing revenue for the two months following the period-end grew 33% compared to the same period in 2023.

Looking ahead, the firm said it was planning to build on its growth by further expanding its international presence and introducing premium game titles, including Slingo Fowl Play and Slingo Press Your Luck.

"We are delighted with our strong performance in the first half of 2024, with total revenue increasing by 18% to £13.6m," said chief executive officer Mark Segal.

"Our focus on expanding our content licensing business has led to a 28% revenue growth and the successful launch of seven new games.

"These results reflect our commitment to innovation and solidify our position in the gaming industry."

Segal said the achievements of the first half demonstrated the "dedication" of the company's team and the appeal of its "unique" gaming offerings.

"We are poised for further growth as we continue to expand into new markets, launch with new partners and strengthen our existing partnerships."

At 1429 BST, shares in Gaming Realms were up 0.05% at 37.72p.

Reporting by Josh White for Sharecast.com.