In its interim results for the six months to the end of June, the developer and licensor of mobile-focused gaming content saw total revenue of £7.7m ($10.6m/€9.0m), with £5.8m coming from licensing, representing a 73% year-on-year increase. Content licensing revenue grew by 39% to £4.1m due to increased distribution from an expanded games portfolio. The brand licensing portfolio also experienced significant growth, with a 298% increase to £1.7m. Overall, licensing revenues increased by £2.4m compared to the previous period, driven by both organic growth and new partnerships.
Social revenue increased by 7.0% to £1.9m, driven by the introduction of new Slingo content, improved player management tools, and new player engagement features. The company generated £3.1m of its total revenue from its US operations, £2.5m from the Isle of Man, £1.7m from international business, and £382,000 from the UK.
During this period, Gaming Realms achieved several milestones, including obtaining a provisional igaming supplier license in Michigan and integrating with BetMGM. The company also secured an interactive gaming manufacture license in Pennsylvania and launched Slingo content in the regulated Italian market through partnerships with Goldbet and Sisal. Additionally, Gaming Realms forged distribution deals with GAN and signed a content licensing agreement with IGT.
Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) reached £2.7m, marking a 116% increase compared to the same period in 2020. The company posted a profit of £800,000, contrasting with a loss of £700,000 in H1 of the previous year. Total business expenses, excluding share option and related charges, rose by 19%. Marketing expenses more than doubled to £207,428 as Gaming Realms focused on social growth in the US, while operating and administrative expenses slightly increased to £1.19m and £3.26m, respectively.
Michael Buckley, the executive chairman, expressed satisfaction with the company’s first-half performance, highlighting significant earnings growth and new licensing and distribution agreements. He emphasized the opportunities in the US markets and expressed intentions to further strengthen their position in Europe. Gaming Realms plans to obtain a license in Ontario, Canada, which has the potential to be a larger market than any US state. The company will also pursue licensing opportunities in newly-regulated US states. Buckley concluded by expressing confidence in the future performance of the business and its focus on scaling the platform and delivering innovative content worldwide.
Gaming Realms’ ordinary shares are listed on the London Stock Exchange’s AIM market, and it started trading its ordinary shares over-the-counter on the OTCQX Best Market in the US in April 2021.
In its 2020 financial year, Gaming Realms reported a 65.2% year-on-year increase in revenue, while also reducing its overall loss. Total revenue from continuing operations for the 12 months to December 31 was £11.4m (€13.1m/$15.8m), up from £6.9m in the previous year. Adjusted EBITDA improved from a loss of £355,116 in 2019 to a positive value of £2.9m, despite higher costs.
