Great results, as expected, but the company now needs to deliver a vision for it’s future.
It’s likely there are no new states in the US opening this year and probably next. Growth in the single Slingo brand won’t continue forever. The company needs to present it’s vision for the next five years.
I don’t think the market will reward the company if it simply waits for more US states to sell its Slingo brand.
The company is building a substantial cash pile, I’ll like them to update the market on how they plan to grow the business with this money. |
Nice piece on gaming realms Around the 63 minutes mark
Worth a listen
On today's Easter stock picking fest, I was delighted to speak to accomplished investor John Hugham of Vox Markets – including:
ttps://www.voxmarkets.co.uk/articles/the-exchange-7f80804/ |
Gaming Realms
6,234 followers
16m
We are now live with DAZN in both the UK 🇬🇧 and Spain 🇪🇸 !
From a week ago
We are thrilled to announce we have gone live with BetConstruct in the UK!
Source LinkedIn |
 Source interactive investor
Online gaming firm Gaming Realms
GMR
0.57%
moved into profit in 2021 and it has been accelerating ever since. The easing of online gaming regulation in the US has provided much of the momentum for growth. A limited number of states have legalised online gaming and there could be others that follow suit over the long-term.
Gaming Realms develops and licences games for mobile, and major gaming firms are clients. The main brand is Slingo. There is a brand licensing deal with Tetris Inc, the holder of the rights to the eponymous falling blocks game, to produce Tetris Slingo mobile. There is also a social gaming operation that does not involve cash betting, but this is becoming less important to the group.
Games developed can be launched in different markets around the world, and the number of countries that the company is involved in is rising.
In 2023, revenues were at a record level of £23 million. Underlying EBITDA was at least £10 million, which means that pre-tax profit could nearly double to around £6.4 million.
Net cash was £7.5 million at the end of 2023. That figure could double this year, which shows the cash generative potential of the business.
Growth is coming from adding additional partners and moving into new countries. West Virginia is the seventh state where Gaming Realms has licensees. Variable costs are 20% of revenues. A 2024 pre-tax profit of £9.2 million is forecast. The shares are trading on less than 14 times estimated 2024 earnings. |
Article from investors chronicle today
Rest is hidden behind paywall
Gaming Realms (GMR) shot up to near the top of our latest growth at a reasonable price (GARP) screen, passing all of our tests. Last time around it came in near the bottom of the rankings, having failed our earnings per share (EPS) downgrade and share price (and/or) earnings momentum tests. This makes it a good time to take a fresh look at the developer and licensor of mobile-focused gaming content, which broker Investec argues "is a rare gem in the B2B [business-to-business] gambling space |
Doesn't appear to have had a 'positive' effect with the share price continuing to drift downwards, with another penny off today. |
New operator lauch
We are delighted to announce we have launched with bet365 in Ontario!
Source LinkedIn |
Gaming realms gets a interesting mention on voxmarkets by Paul Hill video podcast right at the end, not listed on the running order but is there
ttps://www.voxmarkets.co.uk/articles/hot-stocks-on-vox-markets-0149557/
Also a couple of new markets expansion
We are beyond excited to announce we have expanded in Sweden and Romania with PokerStars
We are pleased to announce our games are now live in Spain with OlyBet Group
Source LinkedIn |
Three chunky trades just posted after the market closed, all done at 3pm, at 36.5p. 700k, 200k and 500k. |
Great company but the U.K. market just doesn’t reward companies such as this.
Going forward, I’ll like to see a move away from AIM to the US. I don’t want a dividend but would rather see the cash holdings spent on growing additional revenue streams. The company grew it’s cash pile by some £3m this year and at the same time paid off £3m of debt. On a conservative basis, that should mean £13m in cash next year. That’s a decent amount to acquire additional products.
The US regulation is moving slower than expected. From my reading, only Maryland has a realistic possibility of approving online gaming this year, but not until November. There are two other states that have legalised online gambling - Rhode Island and Delaware. Unfortunately, with populations of around 1million each, I suspect these may be too small for GMR to complete the authorisation requirements.
Great company but would like to see more ambition in developing it further. The games they have today are clearly in demand, but that won’t be the case forever. With state authorisation taking longer than anticipated, the business needs to grow other revenue streams. |
Nice positive mention from Paul scott for gaming realms on his small cap podcast |
And 3 years ago making nada |
35p 3 years ago35p today |
They have to decide if the net cash is excess capital or not: they might want to invest it in new products or buy a business with it. We might get some idea of their plans in the next annual report and accounts. |
Bet it wont be a divvi - more like a share buyback. I wonder why? |
TU was more or less in line with previous guidance:
* EBITDA Net Cash
Marketscreener expected £10.25m £7.98m
Today's trading update Not < £10m £7.5m
Sorry I can't make a neat table right now. The above figures are meant to be in columns under the heading, EBITDA, and in the second column under Net Cash |
With the way the market overall is trading, sideways, and moving down, investors will take any opportunity to trim their holding with a spike up in an SP, as we are seeing today with GMR.
I like the buy rating forecast of 50p by Cannacord, that's an uplift of over 30% from the 37.9p buy price now. |
Sailorsam-you are taking the market and mms's games seriously-just look at the fundamentals-looking good. Could see a 2p divi next year. |
Yes...it's a strange old world !! With all the cash they are now generating I'd love to see a 1p dividend....it wouldn't even cost them £3 million. I'm looking forward to the results statement. |
Bizarre. Amazing results. So down |
Canaccord this morning
Gaming Realms has announced a positive trading update covering the year to end 31 December 2023, showing that the Group made strong progress over FY23E, delivering a record performance, with both revenue and adjusted EBITDA expected to be in line with expectations. Group FY23E revenues are expected to be c.£23m (vs CGe £23.0m), representing growth of c.23% yoy. Adjusted EBITDA (ex SBP) is expected to be above £10m (vs CGe £10.1m), growth of c.28% vs the £7.8m achieved in FY22. This equates to a margin of c.43.5%, a further improvement from the 41.8% achieved in FY22. The Group remains debt-free with a cash balance of c.£7.5m at the end of December. Full FY23E prelims are expected in the week commencing 1 April. This positive outcome has been driven by continued strong growth in content Licensing, with growth seen across all major markets, alongside 44 new partner launches internationally. Management comments that the Group has obtained licenses to supply its games into West Virginia’s iGaming market, the Group’s seventh license in North America, as well as Greece. Launches are expected in both these markets in the coming months. Growth has also driven by increased games content with a further 10 new Slingo games launched in FY23 (75 in total at end of December). The final quarter saw the launch of Slingo Space Invaders and Tetris Slingo, with the Group collaborating with two of the most iconic games brands of their generations. The Group also collaborated with Paddy Power to launch Slingo Bingoton, which was the best new launch on the Paddy Power Bingo platform in 2023.
Valuation and recommendation
Management is looking forward to the year ahead with confidence. GMR trades on a CY24E EV/EBITDA multiple of 7.3x, falling to 5.6x in CY25E, which we think is too low given the forecast growth and increasing North American exposure (45% of Content Licensing revenues in H1'23). We believe that Gaming Realms has a number of attractive attributes. These include: 1.) Significant growth potential; 2.) Exposure to Regulated Markets; 3.) Proprietary and differentiated content and a leading distribution platform; 4.) A highly scalable and profitable, capital-light Licensing model; 5.) An experienced senior leadership team and Board; and 6.) Strong profit margins with scope for further growth. We retain our BUY rating and 50p TP. |
FY23 Record Revenue and adjusted EBITDA* with Growth of 23% and 28% respectively
Gaming Realms plc (AIM: GMR), the developer and licensor of mobile focused gaming content, is delighted to announce its pre-close trading update for the full year to 31 December 2023 ("FY23").
The Company is pleased to confirm that it expects to report FY23 revenue of c.£23 million and adjusted EBITDA* of not less than £10.0 million, up 23% and 28% respectively year-on-year, in line with Board's expectations. The Company ended the year with £7.5 million of net cash.
This strong performance has been predominantly driven by content licensing, with growth across all major markets. During the year, Gaming Realms went live with a further 44 partners across all its markets. In terms of geographic expansion, the Company was pleased to obtain licenses to supply its games into West Virginia's igaming market, the Group's seventh license in North America, as well as Greece. The Company expects to launch in both these markets in the coming months.
Continuing the Company's association with high profile entertainment brands, in Q4 2023, Gaming Realms launched Slingo Space Invaders and Tetris Slingo, collaborating with two of the most iconic games brands of their generations. Gaming Realms also collaborated with Paddy Power to launch Slingo Bingoton, which was the best new launch on the Paddy Power Bingo platform in 2023.
The Company expects to report its FY23 Preliminary Results during the week commencing 1 April 2024.
Mark Segal, Chief Executive of Gaming Realms, commented: "I am delighted to report on the exceptional year Gaming Realms has experienced. Our growth in FY23, with a 23% increase in revenue and a 28% rise in adjusted EBITDA, underscores the strength and appeal of our gaming content in the global market.
"The expansion into new territories and the addition of 44 new partners demonstrates our commitment to broadening our reach and enhancing player experiences. As we look ahead, we remain focused on delivering engaging content and expanding our footprint in key markets, ensuring that Gaming Realms continues to be a leader in the mobile gaming industry. We look forward to the future and the current year's performance with confidence." |
can see why this ticked up on Friday. very good trading update. |
Positive move Friday let's hope it can sustain the rally and push on in the coming weeks. |
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