Gaming Realms PLC Announces Annual Results 2023

Rhea-AI Summary

Gaming Realms plc reports a 26% revenue increase and a 29% rise in Adjusted EBITDA for the year 2023, driven by strong licensing revenue growth and successful market expansions. The Company remains debt-free with a cash balance of £7.5m. Operational highlights include launching in new markets, signing licensing deals with industry leaders, and expanding their game portfolio. Q1 2024 shows a 20% revenue increase in the core licensing business. CEO Mark Segal expresses confidence in the Group's growth strategy and performance.

26% increase in Revenue and 29% increase in Adjusted EBITDA ¹ in Record Year

LONDON, UK / ACCESSWIRE / April 2, 2024 / Gaming Realms plc (AIM:GMR), the developer and licensor of mobile focused gaming content, announces its annual results for the year ended 31 December 2023 and Q1 highlights for 2024.

Gaming Realms' strategic focus on content licensing has driven strong revenue growth and high margins, expanding in both existing and new markets. With a strong pipeline of upcoming games and operator partnerships, the Company expects continued growth in 2024.

2023 Financial Highlights:

• Revenue increased by 26% to £23.4m (2022: £18.7m)

o Licensing revenue increased by 33% to £19.9m (2022: £14.9m)

o Social publishing revenue fell by 5% to £3.5m (2022: £3.7m)

• Adjusted EBITDA increased by 29% to £10.1m (2022: £7.8m)
• EBITDA of £9.2m (2022: £7.4m)

o Licensing segment generated £11.3m EBITDA (2022: 8.0m)

o Social publishing segment generated £0.8m EBITDA (2022: £1.5m)

o Head office costs were £2.9m (2022: £2.0m) and excluding share option and related charges were £2.4m (2022: £1.8m)

• Profit before tax for the year increased by 47% to £5.2m (2022: £3.5m)
• Year-end cash balance increased to £7.5m (2022: £2.9m), with the Group remaining debt free

2023 Operational Highlights:

• Portfolio of proprietary games on the Group's remote game server ("RGS") grew to 75 (2022: 65)
• Granted iGaming Supplier Licenses in West Virginia, Sweden and Greece
• Launched in the regulated market in Portugal
• Launched with 44 new partners for Slingo Originals content including Bet365, Beltclic, OLG (Provincial Lottery in Ontario) and PENN Entertainment in New Jersey, Michigan and Pennsylvania
• · Signed licensing deals with Tetris, Relax Gaming for Money Train and WMG for Fowl Play, a leading slot game in the Italian market
• Increased unique players in the licensing business by 24%
• Launched Slingo Space Invaders and Tetris Slingo, collaborating with two iconic game brands
• Gained ISO27001 certification, an internationally recognised standard for managing information security
• Continued investment in our proprietary RGS platform with the launch of Free Rounds product
• Grew the 4ThePlayer library of games distributed on our network to 7 (2022: 3)​
  

Q1 2024 Highlights:

• A promising start to 2024, with revenue in line with management expectations, driven by our core content licensing business showing a 20% increase in the first two months of the year compared with the same period in 2023
• Launched with 14 new operators including Livescore and DAZN in the UK, Bet365 in Ontario and Entain in Spain
• Released three new Slingo games, including China Shores Slingo and Slingo Capital Gains
• Signed distribution agreement with Playtech which will lead to greater distribution and new market launches

1 EBITDA is profit before interest, tax, depreciation and amortisation and is a non-GAAP measure. The Group uses EBITDA and Adjusted EBITDA to comment on its financial performance. Adjusted EBITDA is EBITDA excluding share option and related charges and adjusting items, which are significant, non-recurring items outside the scope of the Group's ordinary activities.

Summary:
In North America, our strategic initiatives yielded a 26% increase in content licensing revenues in 2023, underscoring the popularity of our Slingo games with our partners and their players. This growth mirrors our achievements outside North American markets, where we experienced a 33% growth in content licensing last year, highlighting our global appeal.

Outlook:
Looking forward, the Group is well placed to deliver further growth in new and existing markets. The launch in the regulated Portuguese market in Q3 2023, along with securing licenses for West Virginia and Greece, signifies our ongoing commitment to increasing our distribution and market diversification. With 14 new partners already launched in 2024, together with three new Slingo games, the Board is confident in the Group's strategy and expectations for the rest of the current year.

Commenting on the Group's performance, Mark Segal, CEO, said:

"I am delighted to present another record year for Gaming Realms. Driven by the growing demand for our Slingo portfolio in the international igaming markets, revenue grew by 26% with adjusted EBITDA growing 29%. This demonstrates the operational leverage driven by our content licensing business.

"We are now licensing our games into 20 regulated markets and have launched with 44 partners in the year and have 75 live games which demonstrates the scale of our content licensing business.

"We have had a promising start to 2024, having already launched with 14 new partners and our new Slingo games, such as Slingo Hot Roll and China Shores Slingo, driving new players to Slingo. With this momentum, we are excited to continue delivering further game launches, new partner deals and, with planned launches in West Virginia and Greece, expanding our global footprint even further."

An analyst briefing will be held virtually at 09:30am today. To attend, please email gamingrealms@yellowjerseypr.com .

The Company also notes that it will be hosting an online presentation to retail investors on Tuesday 09 April at 10:00am. Those wishing to join the presentation are requested to sign up to Investor Meet Company for free and add to meet Gaming Realms via: https://www.investormeetcompany.com/gaming-realms-plc/register-investor

Enquiries

Gaming Realms plc	0845 123 3773
Michael Buckley, Executive Chairman Mark Segal, CEO Geoff Green, CFO
Peel Hunt LLP - NOMAD and joint broker	020 7418 8900
George Sellar Lalit Bose
Investec - Joint broker	020 7597 4000
Bruce Garrow Ben Farrow Lydia Zychowska Yellow Jersey PR Charles Goodwin Annabelle Wills	07747 788 221

About Gaming Realms
Gaming Realms creates and licenses innovative games for mobile, with operations in the UK, U.S., Canada and Malta. Through its unique IP and brands, Gaming Realms is bringing together media, entertainment and gaming assets in new game formats. As the creator of a variety of Slingo ^TM , bingo, slots and other games, we use our proprietary data platform to build and engage global audiences. The Gaming Realms management team includes accomplished entrepreneurs and experienced executives from a wide range of leading gaming and media companies.

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SOURCE: Gaming Realms PLC

View the original press release on accesswire.com

FAQ

What was the revenue increase percentage reported by Gaming Realms plc for the year 2023?

Gaming Realms plc reported a 26% increase in revenue for the year 2023.

What was the percentage increase in Adjusted EBITDA for Gaming Realms plc in 2023?

Gaming Realms plc saw a 29% increase in Adjusted EBITDA in 2023.

How did Gaming Realms plc's licensing revenue perform in 2023?

Gaming Realms plc's licensing revenue increased by 33% to £19.9m in 2023.

What was the year-end cash balance for Gaming Realms plc in 2023?

Gaming Realms plc reported a year-end cash balance of £7.5m in 2023.

How many new partners did Gaming Realms plc launch with in 2024?

Gaming Realms plc launched with 14 new partners in 2024.