Slingo specialist Gaming Realms posted an increase in revenue, EBITDA and net profit during H1, helped by growth within its content licensing business and the launch of new games.
Total revenue for the six months to 30 June was a record £13.6m (€16.1m/$17.8m). This is 18.3% more than H1 last year and slightly higher than Gaming Realms forecast in its preliminary results.
Presenting its results, Gaming Realms noted the success of its content licensing business in particular. Here, revenue jumped 27.3% year-on-year to £11.2m on the back of a 46.0% rise in North America.
During H1, the group went live with 22 new partners in existing markets within Europe and North America. It followed this up by launching with 11 additional partners after the end of the period.
As for content, an additional seven new Slingo-branded games were released to the market during the period. This increased its overall portfolio to 82 games at the end of the half.
“Our focus on expanding our content licensing business has led to a 28% revenue growth and the successful launch of seven new games,” Gaming Realms CEO Mark Segal said. “These results reflect our commitment to innovation and solidify our position in the gaming industry.”
Social success, brand licensing struggles in H1
While content licensing continues to grow, the same could not be said for brand licensing. Revenue from this non-core part of the business declined 67.0% to £300,000 during H1.
Gaming Realms said this fall is a result of two brand deals that completed in the same period last year. This includes a one-off £600,000 that did not repeat in H1 this year.
Elsewhere, revenue from the US-facing social business increased 16.7% to £2.1m, with the group noting marketing investment to increase player numbers, activity and revenue. However, it does not plan to continue this in H2 as the group expects revenue to be maintained.
“Social remains a business where we can further monetise our Slingo portfolio,” Gaming Realms added.
Global growth for Gaming Realms
In terms of geographic performance, the US is still the stand-out market for Gaming Realms. Total revenue in this region hit £7.7m, up 35.1% year-on-year.
Malta revenue also increased by 29.4% to £2.2m but revenue in Gibraltar declined 40.0% to £1.5m. However, Gibraltar was the only region where revenue was lower, with the group seeing success elsewhere.
Isle of Man revenue jumped 101.5% to £791,493, while UK revenue, including the Channel Islands, climbed 11.7% to £593,404. Rest of world revenue also increased 16.9% to £778,827.
Net profit rises 32.0%
In terms of spending, marketing costs were scaled back but expenses were higher in all other areas. The main outgoing for Gaming Realms in H1 was administrative costs at £4.6m.
After including additional financial expenses, this left a pre-tax profit of £3.5m, up 45.8%. The group paid £253,324 in tax and reported £28,211 in foreign-exchange loss.
As such, it was left with a net profit of £3.3m, an increase of 32.0% on last year. EBITDA also climbed 22.2% to a record £5.5m.
“The achievements of the first half demonstrate the dedication of our team and the appeal of our unique gaming offerings,” CEO Segal said. “We are poised for further growth as we continue to expand into new markets, launch with new partners and strengthen our existing partnerships.”
