Gaming Realms revenues soar 89%

Gaming Realms posted a loss of £2.8m in H1 2015, down from a loss of £3.5m last year as a near-doubling of revenues helped offset an increase in marketing expenses, the company announced this morning.

Revenues for the six-month period ended 30 June were up 89% to £8m, up from £4.2m in H1 2014, as the operator’s number of daily active players soared 85% year-on-year with particularly strong growth from its real-money business.

The AIM-listed operator launched its proprietary real-money gaming platform in September 2014 which led to a 419% year-on-year rise in real-money gambling revenue to £4.2m from its Spin Genie and PocketFruity brands.

“Our proprietary platform is delivering excellent results, keeping more mobile players engaged and returning for longer periods of time,” Patrick Southon, CEO of Gaming Realms, said.

The operator increased its marketing investment during the period to £5.1m, up from the £4.6m spent in the corresponding period last year, while operating costs also increased to £2.4m as a result of the new platform.

Gaming Realms also completed a number of acquisitions during 2015 including a deal with RealNetworks to acquire the Slingo brand and a number of other assets for US$18m (£11.8m) as part of its social casino expansion strategy.

“The recent North American acquisition of gaming assets from RealNetworks… complements each area of the Group’s activities and makes possible exciting new global opportunities,” Southon added.

Earlier this year also struck a deal to sell its Bingo Godz and Castle Jackpot brands to European Domain Management for £500,000.

Cenkos Securities analyst Simon French said this morning he expects the company to breakeven in H2.

Gaming Realms’ share price was up 1p to 25.25p after early morning trading.