- Content licensing revenues grow 57% to £6.4m
- EBITDA from £3.5m with an EBITDA margin of 41%
LONDON, UK / ACCESSWIRE / September 20, 2022 / Gaming Realms plc (the “Company” or the “Group”) (AIM:GMR), the developer and licensor of mobile gaming content, is pleased to announce its interim results for the six months to June 30, 2022 (the “Period” or “H1 ’22”) .
|H1 2022||H1 2021||Change|
Revenue (content licenses)
Revenue (brand licenses) *
The total turnover
EBITDA before stock option and related costs
* Brand licensing revenues were down as a result of a major one-off deal that positively impacted revenues in H1 2021.
- Total revenue grew 10% from £7.7 million in H1’21 to £8.5 million in H1’22. Group EBITDA grew 12% to £3.5m2 (H1’21: £3.1 million), representing an EBITDA margin of 41% (H1’21: 40%). Excluding brand licensing, revenue grew 36% from £6.0m in H1’21 to £8.2m in H1’22
- Total license revenues grew 15% to £6.7 million (H1’21: £5.8 million), while content license revenues grew 57% to £6.4 million (H1’21: £4. 1 million)
- North American revenues of £4.7 million, representing 55% of total sales
- Social revenue declined 7% to £1.8m (H1’21: £1.9m), but with a reduction in related costs, this segment increased its EBITDA by 13%
- Profit before tax up 66% to £1.3m (H1’21: £0.8m)
- Connecticut Online Gaming Service Provider License Granted with Launch Expected in Q4’22
- Grant of iGaming Vendor License in Ontario and subsequent launch with 8 operators
- Launched in additional regulated markets in Spain and Denmark
- Slingo content launched with WLA member Loto-Quebec
- Launch of games distribution with 4ThePlayer in New Jersey
- Released 8 new games including: Slingo Shark Week and Slingo DaVinci Diamonds. The Group now has 61 games in its portfolio (December 21: 53 games, June 21: 48 games)
After end of period:
- License revenues increased by 53% in the two months after the end of the period compared to the same period in 2021
- Betway and Pokerstars launched in Europe
- Two new Slingo games released: Slingo Stampede and Slingo filthy rich
Outlook for FY22:
Gaming Realms continued to make progress in the first half of the year, with its core strategy of developing and licensing games globally to market-leading brands and operators delivering high-margin revenues.
This growth is expected to continue into the second half of the year as the company matures in its key markets. In addition, the Group is targeting launches in Connecticut, Portugal and Greece, and forecasts growth in the recently launched markets of Michigan, Pennsylvania, Ontario, Spain and the Netherlands.
The European market continues to be the largest contributor to content licensing revenues, growing 19% over time with the launch of 8 games and access to new regulated markets. We have more direct integrations with partners, which improves margins and strengthens these relationships.
Our North American content licensing revenues grew 160% period-on-period, with the region accounting for 45% of content licensing revenue. New Jersey remains our lead market, but Pennsylvania and Michigan are growing strongly as we launch more games with new partners. On June 30, 2022, we were live with 7 games in Pennsylvania for 6 partners and 17 games for 7 partners in Michigan.
In total we started with 26 partners in H1 2022 (H1’21: 11). This growth is supported by the launch of premium games, including Slingo Shark Week and Slingo Da Vinci Diamonds. We continue to invest in our third-party game server and during the period we launched our aggregation business in New Jersey with 4ThePlayer.
The Group continues to deliver on its clear strategy, expanding into new markets and launching content that proves popular with players. It has a strong pipeline of deals and integrations and the Board expects trading for FY’22 to be in line with market expectations.
Commenting on the first half performance, Michael Buckley, Executive Chairman, said:
“The Group has enjoyed another period of strong growth, supported by our continued expansion into newly regulated markets in North America and Europe, with content licensing revenues up 57%. More than offset by higher revenues from our core content licenses, the growth in license revenues continued in the second half of this year, with license revenues for July and August 2022 being 53% higher than the comparable months in 2021.
“We have also continued to expand our existing partnerships, adding new content through our direct integration agreements, signing new licensing agreements and launching a range of new games.
“While we are aware of the impact of higher inflation on global markets, the outlook for the Group remains positive. The Group has a strong pipeline for new business and will also see additional revenues from North America, as well as new market entry in Europe. As such, we expect to live up to market expectations for the full year.”
An analyst briefing will be held virtually today at 9:30 am. Please contact Yellow Jersey at firstname.lastname@example.org.
The company also notes that it will hold an online presentation to retail investors on Friday, September 23 at 1:00 PM. Those wishing to attend the presentation are requested to register through the following link: Meeting Registration.
Gaming Realms plc
0845 123 3773
Michael Buckley, Executive Chairman
Peel Hunt LLP – NOMAD and Broker
020 7418 8900
07747 788 221
The Group achieved total revenue growth of 10% to £8.5 million (H1’21: £7.7 million), driven by the Group’s core content licensing business. Total expenses increased by 2%, resulting in a 25% increase in total EBITDA generated across the Group to £3.3m (H1’21: £2.7m).
The Group posted a pre-tax profit for the period of £1.3 million, up 66% on the same period in 2021.
License segment revenues were up 15% to £6.7m (H1’21: £5.8m), which breaks down as:
- Content license revenue growth of 57% to £6.4m (H1’21: £4.1m); and
- Brand licensing revenues were down 82% to £0.3m (H1’21: £1.7m).
The segment delivered £3.6m EBITDA over the period, an overall increase of 8% from £3.4m in H1’21.
The Group’s core focus remains to achieve growth in its content licensing business. Continued growth of the games portfolio and expanding distribution to a wider range of operators in Europe and North America are supporting the performance of the current period.
During the period, the Group began collaborating with partners in three additional regulated markets, Ontario, Spain and Denmark. In addition to going live with partners in these newly entered markets, we also went live with an additional 18 partners in existing markets in Europe and North America during the period.
An additional 8 new Slingo games were launched during the period, bringing the Group’s game portfolio to 61 games at the end of the period (H1’21: 48 games).
All of this resulted in a 57% increase in content licensing revenues to £6.4m (H1’21: £4.1m).
Revenues from the Group’s non-core brand licensing activities decreased by 82% to £0.3 million (H1’21: £1.7 million). This is the result of a significant brand agreement that was entered into in the comparative period and which did not recur during the period.
Revenues in the Group’s social publishing business were down 7% to £1.8 million in the period (H1’21: £1.9 million) due to a reduction in marketing during the period.
However, with total costs of the segment (excluding stock option and related costs) down 16% to £1.1 million (H1’21: £1.3 million), the segment delivered 13% growth in EBITDA to £ 0.7 million (H1’21: £0.6 million).
The reduction in total segment expenses includes a 21% decrease in operating expenses, largely driven by revenue, and a 99% reduction in marketing expenses compared to the prior period.
Cash flow and balance
The Group’s cash balance at 30 June 2022 was £4.0 million, a reduction of £0.4 million from the £4.4 million reported at 31 December 2021.
The cash decrease in the current period was largely due to the £2.0m cash inflow from operating activities, offset by £2.1m development costs capitalized during the period and £0.2m acquisition of tangible and intangible assets .
After the end of the period, the cash balance rose to £4.6m at 31 August 2022, reversing negative movements in working capital in the first half of the year.
The Group has a convertible loan of £3.0 million owed to Gamesys Group plc (see Note 11), which is due to be repaid in December 2022.
Net assets were £16.1 million (31 December 2021: £13.1 million).
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SOURCE: Gaming Realms PLC
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