Gaming Realms delivers maiden FY profit
Operator dials back losses from social gaming as RMG continues to show strong growth
Gaming Realms has reported a maiden full year profit for FY2017 £0.8min adjusted EBITDA, up from a £2m loss in 2016.
The firm attributed much of the upturn to its pivot away from its loss-making social money business with social publishing revenue down by 13% to £6.9m, with a 45% reduction in marketing as well as a reduction in headcount of 19.
RMG revenue increased by 5% to £22.7m, resulting in group revenue excluding disposed-of non-core assets down 1%.
“Achieving profitability marks a major milestone for Gaming Realms,” said Patrick Southon, CEO of Gaming Realms.
“We have continued to deliver on our strategy of developing and distributing our unique Slingo branded range of games, both direct to customers via our in-house gaming and social platforms, and increasingly via licensing our games to third-party operators.”
“The focus on content licensing has shown excellent early success and will provide Gaming Realms with longer term, consistent higher margin revenues. The recent agreements signed with major gaming and media companies illustrates the creativity of our content, and we look forward to furthering progress and growth in 2018.”
Licensing revenue was flat in the period at £0.8m.
The firm also hailed its operational progress so far in 2018 which has seen four new licensing agreements signed with 888 Holdings, Golden Nugget Casino, Leander Games and Gaming Innovation Group, and Slingo content launched on Ladbrokes Coral.
Gaming Realms share price climbed 2% in early trading on the AIM stock exchange.