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Gaming Realms targets international distribution and US expansion

Snapshot

  • Sold consumer-facing business for £11.5mln
  • Retains the Slingo brand and intellectual property
  • Now focused on game development and worldwide licensing
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Quick facts: Gaming Realms PLC

Price: 11.4 GBX

AIM:GMR
Market: AIM
Market Cap: £32.42 m
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How it's doing

For the year ended December 31, 2019, the firm reported a loss from continuing activities of £4.6mln, down from £5.6mln in 2018, while revenues jumped by 11.5% to £6.9mln.

Over the year, Gaming Realms said it had expanded its game library to 36 titles on its remote server from 28 in 2018.

Into 2020, the company said licensing revenue had increased by 90% to £1.3mln in the first quarter and that it has also launched games with six new partners in the period, including Sky Betting and Gaming in the UK, Draftkings in New Jersey USA and Caliente in Mexico.

Looking ahead, the firm said its dependence on the UK “will lessen” as it goes live with more international operators, adding that it has applied for a licence in Pennsylvania to distribute its games in the state which is expected to be granted by the end of the year.

Given the strong first-quarter performance, Gaming Realms said it was confident in ita ability to deliver its full-year aspirations.

May saw another Tier-1 partnership, this time with US group with Hasbro for Slingo.

Hasbro will look for licensing opportunities for new and existing territories in certain digital gaming categories outside the online real money gaming and lottery segments.

What the boss says: executive chairman Michael Buckley

"I am pleased to inform shareholders that our licensing revenues for the first quarter of 2020 were 90% ahead of the same period of 2019, and we are operating ahead of the Board's forecast. These operating results, together with new deals already announced and the pipeline of additional distribution partners to come, gives the Board confidence in the strategy being pursued, and our expectations for this year and beyond."

" In light of the Covid-19 pandemic, I would like to reassure all our investors and stakeholders that the Group has taken every precaution to ensure the safety of our staff and those we work with. While it is impossible to predict the duration of this situation, we continue to experience a high level of demand for our products which supports the Board's confidence in the future prospects of the business."

 

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Inflexion points

  • In March, the company said it is launching its Slingo Originals content with Sky Betting & Gaming in the UK and with DraftKings in the US state of New Jersey
  • Slingo straightforward to sell, just a question of integration onto other platforms
  • International revenues to grow and reduce UK risks where regulation is tightening
  • New partners in US, Asia and Scandinavia

 

What the broker says: Peel Hunt 

In a note commenting on the final results for 2019, analysts at Peel Hunt retained their ‘buy’ rating and 16p target price, saying the reported loss was smaller than their forecasts and with online casino revenue robust globally, “there could hardly be a better time for Gaming Realms’ content strategy to be bearing fruit”.

“Gaming Realms has built exactly the content businesses positioned to thrive in 2020”, the broker said.

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Watch

Gaming Realms' Slingo: Still going strong after 20 years

Philip Tuck, director of Business Intelligence at Gaming Realms PLC (LON:GMR), talks to Proactive about their decision to focus more on licensing and content development rather than operating games. Tuck also gives a walk through and demonstration of one of their popular games -...

on 27/7/18

3 min read