Mobile game developer Gaming Realms has reported a record year after growing revenue from its core licensing business
The Slingo game franchise developer and distributor said it grew revenue 26 per cent in 2023 to £23.4m, up from £18.7m in 2022.
Licensing revenue surged 33 per cent year on year to nearly £20m, with a further 20 per cent increase already this year. Gaming Realms has added 14 new partners in the first three months of 2024 to operate its games, including Livescore and DAZN in the UK, Bet365 in Ontario and Entain in Spain.
Pre-tax profits increased by 47 per cent to £5.2m and its cash balance is up from £2.9m to £7.5m.
But the stock slumped four per cent when the markets opened on Tuesday, as the company said social publishing revenue fell by five per cent to £3.5m and offered no upgrade to expectations.
Peel Hunt has reiterated its ‘buy’ recommendation for Gaming Realms, as it forecasts the company’s already healthy cash pile to grow during the financial year 2024.
Peel Hunt analyst Ivor Jones said: “We expect the market to catch up with how undervalued we believe the shares are and reiterate our Buy recommendation and 60p target price.”
Chief executive Mark Segal said: “I am delighted to present another record year for Gaming Realms. Driven by the growing demand for our Slingo portfolio in the international igaming markets, revenue grew by 26% with adjusted EBITDA growing 29 per cent. This demonstrates the operational leverage driven by our content licensing business.
“We are now licensing our games into 20 regulated markets and have launched with 44 partners in the year and have 75 live games which demonstrates the scale of our content licensing business.
“We have had a promising start to 2024, having already launched with 14 new partners and our new Slingo games, such as Slingo Hot Roll and China Shores Slingo, driving new players to Slingo. With this momentum, we are excited to continue delivering further game launches, new partner deals and, with planned launches in West Virginia and Greece, expanding our global footprint even further.”