Gaming Realms posts 18% revenue rise on licensing strategy
London-based games distributor reports a 167% increase in licensing revenue but H1 losses widen
Gaming Realms today reported an 18% increase in revenue to £3.2m for H1 2019 with the company now fully focused on licensing games for third-party operators.
The switch in strategy saw licensing revenue at Gaming Realms increase by 167% to £1.6m following the sale of its real-money gaming (RMG) B2C business to River iGaming in July.
Licensing overtook social activities as the main source of income for the London-based developer in the first half, as social publishing revenue decreased by 29% to £1.5m.
Gaming Realms made a total loss of £3.2m for the period, widening from £2.6m in the same period last year. The EBITDA loss for its discontinued RMG business was £900,000.
Marketing costs were lowered from £194,862 to £113,220, but operating expenses rose from £658,615 to £717,162, while the firm saw administrative expenses climb from £2.2m to £2.8m.
Gaming Realms CEO Patrick Southon
Gaming Realms CEO Patrick Southon said: “Our strategy to leverage our market leading ‘Slingo Originals’ games library into the UK and international gaming markets continues to gain momentum.
“Licensing our content to leading brands and gaming operators is delivering high margin revenues and the disposal of the RMG assets has given us greater resources to invest in content creation.
“We are currently performing in line with management’s forecasts and with new commercial developments in the pipeline we are confident in meeting our full year objectives,” he added.
Gaming Realms’ share price increased by 4% in early trading.