Gaming Realms, a London-based gaming company, has announced its robust financial performance for H1 2023, achieving record-breaking revenue and adjusted EBITDA figures. The company’s success was primarily fueled by its content licensing business, marking 12 consecutive half-year periods of growth.

Revenue breakdown

Content licensing emerged as the primary revenue driver for H1, contributing ￡8.8 million, reflecting an impressive 37% annual increase. Brand licensing also made a substantial contribution, with revenue amounting to ￡1 million, showcasing a remarkable growth rate of 222 percent compared to the previous year, albeit from a lower base of ￡0.3 million. However, social revenue experienced a slight decline, falling by 2 percent to ￡1.8 million.

Record-breaking EBITDA

Adjusted EBITDA for the period soared by 37 percent to reach ￡4.8 million, resulting in an adjusted EBITDA margin of 41 percent. This remarkable growth in EBITDA underscores the company’s strong financial performance during this period, driven primarily by its thriving content licensing business.

Operational highlights

Gaming Realms achieved several operational milestones during H1 2023. The company expanded its global footprint by partnering with 25 new entities worldwide. This includes well-known names such as bet365 in the UK, Betway, OLG, LeoVegas in Ontario, and PokerStars in the US (New Jersey). Additionally, Gaming Realms secured a supplier license in Sweden and initiated further license applications in British Columbia and South Africa.

The company also inked brand licensing agreements for iconic titles, Tetris and Space Invaders, with plans to launch these games in H2 2023. Furthermore, Gaming Realms introduced five new titles to the market during H1, including Slingo Cleopatra and Slingo Money Train, expanding its gaming portfolio to encompass over 70 titles.

US market growth

In terms of revenue distribution, Europe remains the largest contributor to content licensing revenues, with a significant 38% growth in H1 2023. This growth was driven by the introduction of five new Slingo games and the onboarding of nine new partners. Notably, North American content licensing revenue surged by 37%, with the region now constituting 45% of the total content licensing revenue (￡3.96 million).

Within the US, New Jersey stands out as the leading market for Gaming Realms, followed by Pennsylvania and Michigan. As of June 30, 2023, the company had a presence in New Jersey with 57 games across 20 partners, 18 games across 12 partners in Pennsylvania, and 28 games across 12 partners in Michigan.

CEO’s perspective

Mark Segal, CEO of Gaming Realms, (pictured above), expressed satisfaction with the company’s strong H1 performance, emphasizing the growth of the international licensing business and the successful launch of innovative Slingo content. Segal also highlighted a robust pipeline of new business opportunities and expressed optimism about the company’s future growth prospects.

Analyst’s insights

In an investor note, Peel Hunt, a London-based brokerage, reiterated its Buy rating for Gaming Realms stock and set a target price of 60p. The note acknowledged the company’s positive current trading with core revenue up 20% beyond the reporting period. Peel Hunt sees favorable conditions for sustained growth, including contributions from licensees, games, and markets, supporting the company’s multi-year growth potential.

As of the latest update, Gaming Realms plc (GMR.L) is trading at GBp34.90, reflecting a 6.93 percent decrease.

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