GAMING REALMS PLC — Earnings Release 2016

Nov 2, 2016

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 0496O

Gaming Realms PLC

02 November 2016

Gaming Realms Plc

("Gaming Realms" or the "Company")

Q3 Trading Update

Strong revenue growth and maiden profitable quarter

Gaming Realms is a rapidly growing developer, publisher and licensor of mobile real money and social games. It creates games content and online brands from which it generates revenue through real money gaming, social gaming and IP and content licensing  As a case in point, Gaming Realms owns the Slingo™ brand and has developed a number of Slingo branded real money and social games.  The Slingo brand is particularly popular in North America, combining bingo with the appeal of slot machines and has attracted more than 100m users over 20 years.

Gaming Realms has had significant success in signing online commercial partnerships with leading organisations and brands including: Britain's Got Talent; the X Factor; Deal or No Deal; Express Newspapers and licensing partnerships with Zynga, IWG and Pala Interactive. It has an offline relationship with Scientific Games which distributes Slingo branded scratchcards in 36 US States. These relationships help to establish recurring revenue from licensing fees for the Company.

Today, Gaming Realms announces a strong trading for the three month period ended 30 September 2016.

Highlights for quarter ended 30 September 2016:
			H1 2015	H1 2016	Q3 2016
			£'000s	£'000s	£'000s
Revenue			7,954	16,632	9,100
Adjusted EBITDA1			(2,428)	(2,999)	960
			H1 2015	H1 2016	Q3 2016
Depositing Players			numbers	numbers	numbers
Average Monthly2			15,493	55,387	53,928
New2			38,869	143,282	51,884

1Before share based payment charges 

2Excluding disposals

·      Q3 profitable following H1 investments, particularly in "Grizzly", our technology platform which makes our content available to third parties and also reduces customer acquisition cost

·      Real money net gaming revenue increased by 113% to £5.9 million (Q3/15: £2.8 million)

·      Social gaming and licensing revenue increased by 189% to £2.5m (Q3/15: £0.9m)

·      Exciting new Partnerships signed with Bauer Media and Express Newspapers

·      Launch of the following websites and apps: "thexfactorgames" (with fremantle); "starwins" (with Express Newspapers); and the "Slingo Arcade" Facebook app. Slingo Arcade features our proprietary real money Slingo games repurposed for a social audience.

·      Depositing players in Q3/16 are in line with the Group's normal seasonal marketing phasing. 

Outlook

As we continue to execute our strategy, the business continues to generate revenue growth and now we have recorded positive EBITDA for the first time. This is an endorsement of the recent success of our game performance and brand partnerships together with the development of our Remote Game Server (RGS) and our proprietary "Grizzly" real money platform. We believe there are significant medium term opportunities to increase revenue in game content licensing across real money and social gaming markets, and will continue to invest in and develop these areas. 

Commentating on current trading, Patrick Southon, CEO said:

"We are pleased with both the continued top line growth and our move into profitability for the first time, especially in a quarter in which we launched several new real money and social games. Our investment in our own platform is paying off through flexibility, reliability and greater player retention. We are delighted with the extended and growing list of partnerships with high profile media companies, opening up new audiences and sources of revenue."

2 November 2016

Contacts:

Gaming Realms plc	0845 123 3773
Patrick Southon, CEO Mark Segal, CFO
Peel Hunt LLP	020 7418 8900
Dan Webster Adrian Trimmings George Sellar
Instinctif	020 7457 2020
Matthew Smallwood Justine Warren

About Gaming Realms

Gaming Realms, founded in 2012, creates and publishes innovative real money and social games for mobile, with operations in the UK and North America. Through its market leading mobile platform and unique IP and brands, Gaming Realms is bringing together media, entertainment and gaming assets in new game formats and driving market growth. The Gaming Realms management team includes accomplished entrepreneurs and experienced executives from a wide range of leading gaming and media companies who have significant experience of growing and managing business to a substantial size.

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTLLFITLTLLIIR