Gaming Realms share price shoots up on 80% licensing growth
Market reacts as Slingo games developer predicts 2020 EBITDA growth to significantly surpass expectations
Gaming Realms’ share price climbed 23% in early trading after the London-listed supplier revealed licensing revenue growth of 80% during April and May.
Group licensing revenue had already increased by 90% in Q1 2020 as the company’s pivot to a B2B licensing model continued to pay dividends, primarily driven by its top-performing Slingo portfolio.
Three new Slingo games have been launched throughout 2020 as Gaming Realms struck partnerships with 888, Sky Betting & Gaming in the UK and DraftKings in New Jersey.
As a result of the uptick, the board expects full-year EBITDA to come in significantly ahead of existing market expectations.
The supplier’s social gaming division also reported a 15% rise during the two-month period after Gaming Realms sealed a non-real-money gaming agreement with Hasbro in May.
Peel Hunt analyst Ivor Jones reiterated his Buy rating for the London-listed supplier. He said: “There is a crowded market for supplying games to online casinos. But increasingly it appears that Slingo is proving its case for being the kind of differentiated content that operators value.
“As a result, Gaming Realms is able to develop games once and generate revenue from them through multiple channels. New Jersey is already a successful market for Gaming Realms and Pennsylvania and Michigan are on the near horizon,” he added.