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Gaming Realms hits jackpot as revenue and earnings soar


Gaming Realms LON:GMR the AIM-listed, mobile games developer has published its pre-close, year-end results for the period ending 31st December 2023 today (5th February).

Mark Segal, GMR’s chief executive said that the gaming company expects revenue to have increased by 23% to at least GBP23m with adjusted EBITDA of at least GBP10m up 28% year-on-year. The company ended the year with GBP7.5m cash in the bank.

Gaming Realms leading product line is Slingo – a combination of ‘Slots’ and ‘Bingo’ – developed by a New Jersey realtor, who set up a company whose IP was bought by GMR in 2015. Gaming Realms also offers online bingo, and versions of popular casino games and slot machines to its mobile customers, allowing them to experience that refined and classy Las Vegas-esque casino rush, whilst they are catching the bus to work.

Gaming Realms licensee model

The company licences its content, for example having its bingo games distributed by gambling site Paddy Power, and is targeting expansion into North America, where it holds seven licenses having most recently acquired a licence to operate in West Virgina’s iGaming market. The gambling company is also expanding in Europe having recently gained a licence in Greece. The company is hoping to launch in both markets later this year. The gaming company also has branding with its games, grafting Slingo onto other games brands like Space Invaders and Tetris.

GMR is developing in line with its board’s expectations. In its last published results for 1H23 it saw its revenue grow 36% y-o-y to GBP11.5m and booked a half-year profit before tax of GBP2.4m, which was up 74% from the same period the year before.

The gaming company hopes to maintain this progress through 2024. Segal said in a statement to the market this morning: “The expansion into new territories and the addition of 44 new partners demonstrates our commitment to broadening our reach and enhancing player experiences. As we look ahead, we remain focused on delivering engaging content and expanding our footprint in key markets, ensuring that Gaming Realms continues to be a leader in the mobile gaming industry. We look forward to the future and the current year’s performance with confidence.”

Planning new market launches

Gaming Realms is planning several new market launches and is constantly updating and developing its range of games. It launched in Portugal through a partnership with Betclic, and hopes to enter South Africa and British Colombia, Canada licencing its games to domestic platforms in those markets this year.

As at September 2023, Europe remains its primary market in terms of content licensing revenues, seeing 38% growth y-o-y, but this was closely matched by a 37% increase in North America content licensing revenues up 37% and now contributing nearly half (45%) of total content licensing revenue. With Slingo originating in New Jersey, it remains the biggest market for the game, but Pennsylvania and Michigan are quickly catching up.

The gambling company’s share price has performed well, opening the week at 38.64p, up 39% on where it was trading a year ago. Over five years Gaming Realms will have given investors a 766% return – not to be sniffed at; much better returns than spinning a ball at a roulette table. The stock has been ‘One to Watch’ at Armchair Trader for a while, where we tipped it just over a year ago as a long-term buy.

At the time we outlined GMR’s investment case:

Gaming Realms: why we like it

  • Exposure to online gaming market, which has massive growth potential
  • Unlikely to be badly affected by recession or Brexit
  • Technology innovator with strong IP and product pipeline
  • Huge strategic expansion opportunity including into massive US market
  • Excellent suite of blue chip partnerships

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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