Gaming Realms expands US presence as H1 revenue jumps 66%
Slingo games provider eager to ease pressure on UK market performance by building on New Jersey success story
Gaming Realms has recorded a 66% year-on-year (YoY) rise in revenue for H1 2020 as it looks towards the US for further penetration opportunities.
The AIM-listed group’s revenue jumped from £3.1m in H1 2019 to £5.2m in H1 2020, while adjusted EBITDA leapt to £1.2m, up from £-0.1m last year.
The supplier’s B2B arm provided £3.4m of total revenue – which marked a 104% increase YoY from £1.7m.
The remaining £1.8m derived from B2C social publishing, representing a 29% annual increase.
Gaming Realms cited strong US-facing performance in H1 2020 as a key growth factor, as the group said it would move towards further state penetration in 2021.
The company expects to begin licensing games in Pennsylvania by Q1 2021 after filing for a game content supplier licence, before entering Michigan (due to launch Q4 2020 or Q1 2021) and further states as and when they regulate on gambling.
In H1 2020, 56% of the group’s revenue was generated in the US. The group currently provides games in New Jersey, where it holds a 3.5% market share of total GGR.
Michael Buckley, Gaming Realms executive chair, said: “Our exceptional performance in the first half of this year is testament to the strength of the company’s strategy of developing and licensing games to market-leading brands and gaming operators using our Slingo IP.
“Whilst our results were enhanced during the Covid-19 period of self-isolation, I am pleased to say revenues in the second half are holding onto levels achieved during the first six months,” he added.
Buckley noted that the planned US expansion would allow the group to diversify its revenue stream and take some of the pressure off UK market performance.
He added: “We remain committed to building and growing our global reach during the second half of the year by investing in our unique content and securing further strategic partnership deals. Our planned expansion into Pennsylvania and Michigan is hugely exciting and is set to significantly increase our foothold in the US, whilst reducing our dependency on the UK market.”
Peel Hunt analyst Ivor Jones said: “The icing on today’s cake is that this growth accelerated in July and August. The cherry on top is that US licensing revenue was up over 40% in H1 2020 and the upside from Pennsylvania and, probably, Michigan is yet to come.”