Gaming Realms has called 2022 an “exceptional year” as revenue and profit before tax finished strong following the group’s entry into new markets throughout the period.
Reflecting on the results, CEO Mark Segal noted that the group’s games are “being enjoyed on a global level”, adding that they’re “excited to continue delivering” after a good 2022 and a solid start to 2023.
Licensing segment drives Gaming Realms’ revenue
Reporting its 2022 annual results, Gaming Realms declared a 27 per cent increase in revenue year-over-year to £18.7m (2021: £14.7m) following the “continued growth in the licensing segment and in particular the content licensing business, supported by modest growth in social publishing revenues”.
Per segment, licensing revenue rose by 35 per cent YoY to £14.9m (2021: £11.1m), broken down to content licensing rising by 57 per cent to £14.3m (2021: £9.1m) while brand licensing revenue fell by 68 per cent to £600,000 (2021: £2m).
Meanwhile, social publishing revenue improved slightly by three per cent YoY to £3.7m (2021: £3.6m).
Gaming Realms reported an adjusted EBITDA for 2022 of £7.8m, a 34 per cent increase YoY (2021: £5.8m). The £2.3m growth has resulted in a new profit-before-tax record of £3.5m, up 224 per cent (2021: £1.1m).
The group declared a year-end cash balance of £2.9m (2021: £4.4m) following a £3.4m repayment to Gamesys Group, ending the year debt free.
Segal commented: “2022 was another exceptional year for the group as we continue with our proven strategy of expanding our Slingo portfolio with new titles and entering new igaming jurisdictions alongside our operating partners. This has supported our 27 per cent revenue growth and we have ended the year with a record profit of £3.5m.
“Having grown our portfolio of games to 65 through 2022 and launched with 56 new partners for our Slingo Originals content, we are experiencing our games being enjoyed on a global level.”
Content reach growth
During 2022, Gaming Realms launched its content in three new North American markets in Ontario (Rush Street Interactive, Kindred and BetMGM) and Quebec (Loto-Quebec) in Canada, Connecticut (DraftKings with FanDuel coming later this year) in the US, while its performance in New Jersey, Michigan and Pennsylvania also continues to be strong.
In Europe, the group launched in three new markets in Spain (Gamesys), Denmark (Betsson), and Belgium (Napoleon), while it also expanded its offering in Italy (Lottomatica, Snaitech and Sisal) and the Netherlands (Bingoal and Betnation). It also obtained a gaming licence in Romania.
Gaming Realms grew its proprietary games portfolio on its remote game server to 65 (2021: 53), going live with 56 new partners with its Slingo Originals content including Pokerstars, Betway, Loto Quebec and Snaitech.
The group also signed licensing agreements with Konami Gaming and Taito Corporation, increased its unique players in licensing business by 19 per cent, completed phase one of its migration to a “more dynamically scalable” next-gen RGS platform and launched three games for 4ThePlayer on its distribution network in Europe and North America.
2023 outlook
Looking to the year ahead, Gaming Realms has stated that it is continuing to focus on three key areas:
- International expansion – particularly in the US and Europe.
- Adding new distributors, operators and licensors.
- Further penetration with existing distributors and operators driven by new games.
The group has seen its momentum continue in 2023 with “excellent growth” in terms of revenue, which is up 53 per cent in the first two months compared to the same period the previous year.
Content licensing revenue is up 59 per cent YoY, with three games launched so far, including Slingo Cleopatra going live with 13 new partners.
Gaming Realms added that it expects a “strong pipeline of new opportunities” in current markets, so it expects “another strong year in 2023”.
Segal stated: “As we look ahead to 2023, the year is already off to an exciting start with 13 new launches implemented and new Slingo games, such as Slingo Cleopatra and Slingo Golden Envelope, already proving popular amongst fans.
“With our strong foundation built in 2022 already proving fruitful in 2023, we are excited to continue delivering further game launches, new partner deals and expanding our global footprint even further.”