Gaming Realms PLC Q3 Trading Update (0496O)
November 02 2016 - 3:00AM
UK Regulatory
TIDMGMR
RNS Number : 0496O
Gaming Realms PLC
02 November 2016
Gaming Realms Plc
("Gaming Realms" or the "Company")
Q3 Trading Update
Strong revenue growth and maiden profitable quarter
Gaming Realms is a rapidly growing developer, publisher and
licensor of mobile real money and social games. It creates games
content and online brands from which it generates revenue through
real money gaming, social gaming and IP and content licensing As a
case in point, Gaming Realms owns the Slingo(TM) brand and has
developed a number of Slingo branded real money and social games.
The Slingo brand is particularly popular in North America,
combining bingo with the appeal of slot machines and has attracted
more than 100m users over 20 years.
Gaming Realms has had significant success in signing online
commercial partnerships with leading organisations and brands
including: Britain's Got Talent; the X Factor; Deal or No Deal;
Express Newspapers and licensing partnerships with Zynga, IWG and
Pala Interactive. It has an offline relationship with Scientific
Games which distributes Slingo branded scratchcards in 36 US
States. These relationships help to establish recurring revenue
from licensing fees for the Company.
Today, Gaming Realms announces a strong trading for the three
month period ended 30 September 2016.
Highlights for quarter ended 30 September 2016:
H1 2015 H1 2016 Q3 2016
GBP'000s GBP'000s GBP'000s
Revenue 7,954 16,632 9,100
Adjusted
EBITDA(1) (2,428) (2,999) 960
H1 2015 H1 2016 Q3 2016
Depositing numbers numbers numbers
Players
Average
Monthly(2) 15,493 55,387 53,928
New(2) 38,869 143,282 51,884
(1) Before share based payment charges
(2) Excluding disposals
-- Q3 profitable following H1 investments, particularly in
"Grizzly", our technology platform which makes our content
available to third parties and also reduces customer acquisition
cost
-- Real money net gaming revenue increased by 113% to GBP5.9 million (Q3/15: GBP2.8 million)
-- Social gaming and licensing revenue increased by 189% to GBP2.5m (Q3/15: GBP0.9m)
-- Exciting new Partnerships signed with Bauer Media and Express Newspapers
-- Launch of the following websites and apps: "thexfactorgames"
(with fremantle); "starwins" (with Express Newspapers); and the
"Slingo Arcade" Facebook app. Slingo Arcade features our
proprietary real money Slingo games repurposed for a social
audience.
-- Depositing players in Q3/16 are in line with the Group's normal seasonal marketing phasing.
Outlook
As we continue to execute our strategy, the business continues
to generate revenue growth and now we have recorded positive EBITDA
for the first time. This is an endorsement of the recent success of
our game performance and brand partnerships together with the
development of our Remote Game Server (RGS) and our proprietary
"Grizzly" real money platform. We believe there are significant
medium term opportunities to increase revenue in game content
licensing across real money and social gaming markets, and will
continue to invest in and develop these areas.
Commentating on current trading, Patrick Southon, CEO said:
"We are pleased with both the continued top line growth and our
move into profitability for the first time, especially in a quarter
in which we launched several new real money and social games. Our
investment in our own platform is paying off through flexibility,
reliability and greater player retention. We are delighted with the
extended and growing list of partnerships with high profile media
companies, opening up new audiences and sources of revenue."
2 November 2016
Contacts:
Gaming Realms plc 0845 123 3773
Patrick Southon, CEO
Mark Segal, CFO
Peel Hunt LLP 020 7418 8900
Dan Webster
Adrian Trimmings
George Sellar
Instinctif 020 7457 2020
Matthew Smallwood
Justine Warren
About Gaming Realms
Gaming Realms, founded in 2012, creates and publishes innovative
real money and social games for mobile, with operations in the UK
and North America. Through its market leading mobile platform and
unique IP and brands, Gaming Realms is bringing together media,
entertainment and gaming assets in new game formats and driving
market growth. The Gaming Realms management team includes
accomplished entrepreneurs and experienced executives from a wide
range of leading gaming and media companies who have significant
experience of growing and managing business to a substantial
size.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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November 02, 2016 03:00 ET (07:00 GMT)