Developer of gaming content for mobile, desktop, and tablets Gaming Realms marginally raised its trading expectations today saying the strong momentum from last year continued into 2021.
Strong Growth in 2020
The AIM-listed developer which launched its Slingo content in the Italian market and will soon expand into a second US state, Michigan, said in its annual results statement covering 2020 that licensing revenues in the first quarter of 2021 increased by 60% to £2.1 million compared to the £1.3 million for the same 3-month period in 2020.
“By securing 26 new licensing and distribution partners throughout the year, of which many were Tier 1 operators, and adding 10 new games to our hugely popular Slingo portfolio, we successfully increased the number of unique players playing our games by 140% and saw increased international demand for our content.”Michael Buckley, Executive Chairman, Gaming Realms
Official 2020 figures came out even better than the company’s expectations raised in February to £11.2 million of revenue and £3.1 million of adjusted underlying earnings before interest, tax, depreciation, and amortization (EBITDA). Full year 2020 revenue grew by 66% to £11.4 million, compared to the £6.9 million in 2019, while adjusted underlying EBITDA before share option and related charges came out at £3.3 million, from a minus £0.2million in the year prior.
The rise in revenue was mainly driven by licensing revenues which jumped 81% to £7.5 million, up from the £4.1 million in 2019, while the other vertical, social publishing revenue, contributed to the total by an increase of 41%, from £2.8 million in 2019 to £3.9 million in 2020.
“We remain committed to the expansion of our global footprint, particularly in the US and European regulated markets, through increasing and strengthening our network of distributors, operators and licensors.”Michael Buckley, Executive Chairman, Gaming Realms
Continuing operations adjusted EBITDA came out at £2.9 million, from a minus £0.3 million in 2019, as the licensing segment contributed by £3.7 million to the total, compared to a £1.4 million contribution in the year prior, and social publishing brought in another £1.4 million, coming up from £0.8 million in 2019.
A near 10% reduction in head office costs from £2.4 million in 2019 to £2.2 million in 2020 helped considerably narrow down loss before tax to £1.58 million from the £4.66 million in the previous year.
Gaming Realms said it ended 2020 with cash and cash equivalents of £2.11million, down from £2.63 million the year before.
“With further planned launches in the USA, Denmark, Spain, Canada and Portugal, and a strong pipeline of new and exciting branded Slingo games, the board is confident in the future prospects of the business and looks forward to keeping its shareholders updated on progress.”Michael Buckley, Executive Chairman, Gaming Realms