Gaming Realms eyes swing to profit after slow revenue growth
Reduced marketing spend sees H1 revenues slide sequentially but profitability increase
Gaming Realms has reported a 5% increase in H1 revenues to £15.7m, driven by the firm’s Slingo games content and its social gaming revenues.
And while the figure represented an 18% half-on-half decline as the firm slashed its marketing spend by 32%, profitability improved.
Adjusted EBITDA loss reduced by 71% to £0.9m, with the firm projecting a swing to profit for the full year.
“The Group has made significant progress towards profitability in the first half of 2017,” said Gaming Realms CEO Patrick Southon.
“With H1 losses reduced, the Board anticipates that the Group will be EBITDA positive for the year as a whole.
“Our strategy of focusing our resources and capital on real-money gaming, while continuing to deliver content to other operators, is driving revenue growth. Additionally, our focus on synergies, cost management and reduction is driving improved profitability.”
During the period Gaming Realms secured new B2B content licences for the Slingo Originals portfolio of games and has launched new real-money gaming sites dealornodealcasino.com and loveislandgames.com in partnership with Endemol and ITV respectively.
Patrick Southon – Gaming Realms CEO
Southon added: “Further progress is expected in the second half of 2017 across the business with the RGS partnerships with [New Jersey brands] Resorts Digital Gaming and Rush Street Interactive becoming fully operational, the first European partnership with BetVictor recently launched and our game portfolio expanded.”
Gaming Realms’ share price had fallen 13% to 8p at the time of writing.
Comenting on the results in a note this morning, Regulus Partners said: “The days of easy growth may be over, but the days of sustainable long-term growth are not.”