Gaming Realms: H1 breathes confidence in long term prospects

Confidence concept
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Gaming Realms has voiced significant confidence in achieving maintained growth through the remainder of the year, with the company’s board said to be “comfortable with market expectations around FY23 financial performance”.

Across a first half of the year that saw the group launch with 25 partners and submit licences in British Columbia and South Africa, total revenue increased 36 per cent to £11.5m (2022: £8.5m).

Furthermore, the sixth month time frame, which also brought receipt of Swedish certification, saw Gaming Realms’ licensing revenue record a 46 per cent uptick to £9.8m (2022: £6.7m).

Content licensing continued a streak of consecutive half years of growth that now stands at 12 to close the January to June time frame at £8.8m, up 37 per cent from £6.4m.

Europe continues to be the largest contributor courtesy of a 45 per cent increase, with North America advancing 37 per cent to account for a 45 per cent slice that is spearheaded by New Jersey.

Brand licensing soared to £1m (2022: £300,000), while revenue from the group’s social segment slightly declined by two percentage points to £1.8m.

Profit before tax grew 74 per cent to £2.4m (2022: £1.4m) and adjusted EBITDA closed at £4.8m, up 37 per cent from £3.5m. Net cash at the period’s end increased 54 per cent to £4.5m (2022: £2.9m), which Gaming Realms said is “demonstrating the cash generative nature of the group’s business model”.

Following the close of the reporting period, licensing revenue stands 20 per cent ahead during July and August compared to the same period one year earlier..

“We have delivered a strong first half performance as we have grown our international licensing business with the launch of our innovative Slingo content to a growing number of partners and players,” noted Mark Segal, Gaming Realms’ Chief Executive Officer.

 “The group has a strong pipeline of new business and the outlook for the group remains positive. We are seeing growth in our existing partnerships coupled with new operator, product and market launches, which gives us great confidence in terms of the longer term prospects for the business.”