18:00 Fri 23 Mar 2018
Gaming Realms PLC - Sale of Affiliate Business and Trading Update
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Sale of Affiliate Business and Trading Update
EBITDA positive for 2017
The sale of the affiliate portals is consistent with the Company's strategy to focus its resources on its real money gaming and content development businesses. The Company has also seen the affiliate segment become more competitive, with revenue from the affiliate business declining by 25% in 2017. The affiliate business delivered
1ST Leads has paid
The Company intends to use the sale proceeds for the ongoing marketing of its real money gaming brands and further development of new gaming content.
Trading Update
Financial Highlights (unaudited): |
2017 |
2016 |
|
£'m |
£'m |
Revenue excluding disposals |
31.6 |
32.0 |
Adjusted EBITDA1 (excluding disposals) |
0.7 |
(1.7) |
1Before share based payments and restructure costs and excludes unrealised foreign exchange losses
2017 Highlights:
Operating B2C gaming sites in the current
▪ Delivered a maiden full year EBITDA of
▪ Grew real money gaming revenue by 5.5%, whilst reducing marketing spend by 17% and having an increased operational focus on responsible gambling.
▪ Readdressed its social gaming business with the launch of
▪ Developed a Remote Gaming Server ("RGS") platform and 11 new games, enabling the Company to build the foundation of a successful B2B licensing division. This has facilitated the licensing of enhanced Slingo Originals content to operators in
▪ Secured a 10-year services agreement and
▪ Completed the
Current Trading and Outlook
The Company has had a strong start to 2018, with licensing agreements signed with 888 Holdings and
The operational focus on real money gaming has seen player value increase 24% during the first two months of 2018. In
Following the restructuring of the social gaming business in 2017, the Company is pleased to report that this business is now EBITDA positive.
In addition to the above, management is examining other ways to maximize value from the assets within the business to enhance shareholder value.
The Company still expects overall EBITDA growth in 2018 but acknowledges that the sale of Bingoport will reduce EBITDA in the short term. However, it does expect to see the benefits of the recently signed licensing agreements and real money gaming partnerships come through later in the year, contributing to longer term growth and looks forward to updating the market in due course.
The Company will announce its preliminary results for the period in early
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Enquiries:
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0845 123 3773 |
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020 7418 8900 |
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07747 788 221 |
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