Gaming Realms offloads stuttering affiliate business
Provider sells bingoport and freebingohunter sites to digital marketing firm 1st Leads amid falling revenues
Gaming Realms today announced the sale of its affiliate business, bingoport and freebingohunter, for a total consideration of £2.4m.
The operator said the assets, bought by 1ST Leads, had seen revenues decline by 25% to £900k for 2017 due to increased competition.
Gaming Realms CEO Patrick Southon said the disposal of the affiliate portals marked the completion of a transition to a more profitable business, focused on real-money gaming and Slingo licensing.
The sale was announced alongside the company’s FY2017 results which included full-year revenue of £31.6m, down from £32m last year but offset by a significant rise in EBITDA to £700k after 2016 losses of £1.7m.
The mobile developer also grew real-money gaming revenue by 5.5% and reduced marketing spend by 17% through an increased operational focus on responsible gambling.
The firm said it readdressed its social gaming business with the launch of Slingo Arcade, a new app based on the Slingo Originals content that helped to partially offset a 13% overall decline in social revenue, while social marketing spend was also reduced by 45%.
Further 2017 operational highlights included the signing of a 10-year services agreement and £3.5m convertible loan with Jackpotjoy Group and the financial completion its Blastworks acquisition.
“2017 was a year of significant developments, with the company delivering maiden positive EBITDA and successfully focusing resources towards real money gaming and licensing our Slingo Originals content to improve margins,” Southon said.
“With further licensing opportunities to follow, we believe that the company is in line for improved bottom line growth in 2018,” he added.