Gaming Realms making progress
News on 13 Sep 2017
News on 13 Sep 2017
Streamlining operational and marketing efficiencies is assisting progress for Gaming Realms who reported improved EBITDA and reduced losses albeit still reporting the company in the red.
Key performance indicators for the first half period ending June 30, 2017, include:
– Revenue growth of 5 percent to GBP 15.7 million (H1/16: GBP 14.9 million) driven by the continued success from the Company’s proprietary mobile platform (“Grizzly”) and its Slingo IP driven games.
– Steady growth in social publishing, which contributed GBP 4.0 million (H1/16: GBP 3.4 million) of social gaming revenues in H1/17
– Adjusted EBITDA loss reduced by 71 percent to GBP 0.9 million (H1/16: GBP 3.1 million), with Loss before Tax on continuing operations reducing by 30 percent to GBP 4.1 million (H1/16: GBP 5.8 million)
– Continued execution in cost reductions, in particular marketing optimization on real money gaming, was 26 percent lower at GBP 4.8 million (H1/16: GBP 6.5 million), whilst revenues grew 5 percent to GBP 10.7 million (H1/16: GBP 10.2 million) and head count reduction of 28 staff through synergies in social publishing for annualized costs saving of approximately GBP 2.0 million, reflecting both improved operational and marketing efficiency
Looking ahead, the Group has gone live in New Jersey with Resorts Digital Gaming and Rush Street Interactive and will launch their remote game server with Pala Interactive, Caesars Interactive, Betfair and Bwin as well as with Betvictor in the European market during the second half.
Management is confident the Group will be EBITDA positive for 2017 as a whole, and significantly EBITDA positive in H2 2017, with continued cost efficiencies and real money gaming average daily revenue up 11 percent so far in Q3 2017 compared to the same period in 2016. Social publishing is now EBITDA positive
Patrick Southon, Chief Executive, said:
“The Group has made significant progress towards profitability in the first half of 2017, 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, whilst continuing to deliver content to other operators, is driving revenue growth. Additionally, our focus on synergies, cost management and reduction is driving improved profitability.”
