Totally agree it doesn't make sense that the Share Price is so low with all the positive news that's been released and generating good revenue . Surely it's only a matter of time but Aim stocks are not fashionable at the moment . |
Hi Epic it really baffles me as to why the share price is well below its highs of 45p with all the good news is about they have money in the bank which for a share on AIM is rare i think i am right in saying that staff have potions at 32p so surely that bodes well for them to work hard and increase the share price well in excess of 32p.Would be helpfull if they can get it back up in the 40 s again. |
 Nice article showing how cheap gaming realms will become if forecasts are met
Growth in North America propelled Gaming Realms (LON: GMR) during 2022 and it is continuing into this year. Newer markets are yet to make a significant contribution.
AIM-quoted Gaming Realms develops online real money-based and social games, which are licenced to partners around the world. The focus is slots and bingo games. The growth is coming from real-money games.
In 2022, revenues grew from £14.7m to £18.8m, while underlying pre-tax profit increased from £2.5m to £2.8m. Even though social gaming revenues were flat, the profit contribution increased because of lower marketing spending.
Cash generation is strong and more than covers capitalised development costs. Net cash is £2.92m.
North American revenues more than doubled last year. The North American online casino market is set to grow significantly, and Gaming Realms can also gain market share. Revenues are growing quarter on quarter. There is also plenty of growth to come from other countries.
It can take around three years for a new market to mature. Gaming Realms entered three new markets in Europe last year and it is set to enter even more markets this year – depending on the timing of regulatory approvals.
Future
This year has got off to a strong start with a 53% increase in revenues in the first two months. Peel Hunt is forecasting 22% growth in revenues for 2022, but it points out that the first half tends to be a weaker period. Even so, there could be scope for upgrades later in the year.
A 2023 pre-tax profit of £7.4m is forecast. At 26.9p, the shares are trading on less than eleven times prospective 2023 earnings and the multiple could fall to eight next year.
The cash pile will continue to build up – it could reach £15m by the end of 2024 – and acquisitions may be considered to enhance growth. For now, there is plenty of organic growth to go for. Good value. |
Interestingly missed this section with numbers for the first two months in the annual report that's quite a jump
Increased year-on-year revenue by 53% in the two months post year end to £3.7m (2022: £2.4m)
A average revenue of £1.85 millon per month compared to 1.2 millon for previous year first two months |
Marese O’Hagan speaks to Mark Segal, CEO of Gaming Realms about the company’s positive full-year results, its 2022 successes and how it expects to grow in the year ahead.
Gaming Realms’ 2022 full-year results were certainly some of the more positive to come out of the financial season. The operator reported a revenue rise of 27.2% for the year to £18.7m, along with a 112.0% increase in content licensing revenue growth in North America.
Segal attributes Gaming Realms’ success to a number of elements, with marketing at the forefront.
“It’s a mixture of three things,” says Segal. “The first is New Jersey – which is a more mature market for us – we still grew in that market throughout the year.”
MARK SEGAL, CEO, GAMING REALMS
“The next element, which is a larger element of it is, in the backend of 2021 we launched in Michigan and Pennsylvania. And finally we launched in Ontario on the market opening day.”
Segal draws attention to the success of Gaming Realms’ Slingo product – a product comprising of slots and bingo – which he says was at the crux of the company’s success in 2022.
“It’s a mixture of higher growth on the new markets, and markets that have been recently launched, and managing to grow in markets we’re maturing in,” he says. “Slingo is popular in all our markets, particularly in the US.”
“We have great relationships with operators there. It’s got great brand presence in the US.”
Market presence
Although Gaming Realms’ content licensing skyrocketed in the US, Segal does not envision the same growth in 2023. Instead, he sees success in Gaming Realms’ other live markets.
“If I’m being honest, I don’t think the North American growth will be the same this year,” he muses. “Albeit, I think we’ll see – like the model before – where we’ve gone live in certain markets and with operators, we’ll see good growth in those.”
“It’s just that we’ll have slightly more mature business in other areas.”
These other areas are likely to include Gaming Realms’ most recently entered markets, explains Segal, which will benefit from renewed focus in the next year.
“We don’t have a new US market to tackle [in 2023], which allows us to focus on other markets,” he says. “Italy, for example, Spain, the Netherlands. They’re markets we went into in the last year or so.”
“Hopefully we’ll go into Greece this year, and South Africa. It’s really exciting.”
Home of the brave
Gaming Realms’ US success is further evidenced by its aggregation launch in 2022, which Segal coined as a particular asset going forward.
“We started an aggregation business in the year, taking for-the-player slots into the US market,” he says. “It’s still small. I’m not saying we’re going to become an aggregator, but it just shows how difficult it is to get distribution in the US, and we’re there. So we have a big asset in distribution there.”
Despite an uptick in US market presence, Gaming Realms’ marketing spend tumbled by 70% in 2022. Segal says this signifies the company’s strategic outlook and where growth is generally predicted to occur.
“We have two sides to our business,” he explains. “The big growth driver is our content licensing, being a games studio, and aiming to be a leading supplier. But the other side is our social business in the US.”
“The majority of marketing begins with that.”
High margins
Gaming Realms’ 218.2% growth in pre-tax revenue, as well as a rise in earnings before interest, tax, depreciation and amortization (EBITDA) of 45.1% is a marker of operational leverage, says Segal.
“We’re quite a high margin business incrementally,” he continues. “So we’ve reached the point where we have operational leverage in the business so that we can grow the revenues at a higher margin than before.”
But Segal maintains that Gaming Realms’ wagering power is its biggest asset.
“What underpins a lot of what we do now is, we’re got a big platform which is generating £4bn worth of bets,” he explains. “We have a big platform in many markets, and we’re ready now to enter markets quite quickly, particularly the US and North America as they open.”
Looking back over 2022, Segal doesn’t offer just one main success for Gaming Realms throughout the year. It’s a collective positive action, one evidenced by a steady momentum in its live markets.
“It’s not one thing,” he muses. “I think it’s the fact that we’re able to continue this momentum of having quarterly growth, monthly gaming launches in the operators we have live.”
This is something that Segal hopes to continue into 2023 – with the first two months of the year potentially providing a sign of things to come.
“We’ve started this year with 53% year-on-year revenue growth in the first two months,” he says.
“We’ve started 2023 really well, which is really exciting for us.” |
The like for like growth in 2023 post year end it very encouraging. I agree, GMR looks undervalued on its current trajectory. |
Fantastic results and the current share price looks ridiculous, in my view.
A mc of £79m on profit of £3.5m implies a pe ratio of 22. However, the most important comment in the results was this:
Gaming Realms has seen this momentum continue into 2023, with excellent growth in the year to date, with revenues 53% up in the two months post year-end compared with the same period in 2022.
Given that a 27% increase in revenues led to a 200% increase in PBT last year, it’s reasonable to expect a similar increase again this year. This would imply a forward PE ratio in the single digits.
Add into the mix further states opening up in the US and this, IMO, is seriously undervalued. |
We just need a few more US states opening up but outlook is good
Gaming Realms has seen this momentum continue into 2023, with excellent growth in the year to date, with revenues 53% up in the two months post year-end compared with the same period in 2022. Content licensing revenues have increased 59% in the same period. |
I think you're underselling it! Has the mkt missed the revenue growth YTD? |
Debt free. PBT up 200%. Great start to 23. Fantastic update |
Results look to me.Profitable and debt free having paid off the loan. |
We’re excited to announce that we’ve continued our expansion in the Pennsylvania market with the launch of Caesars. 🚀
Our games are launching through our integration with our North American partner, Light & Wonder.
Source linkedin |
Yes, according to their February pre-close trading update "The Company expects to report its FY22 Preliminary Results during the week commencing 3 April 2023" - so next week. |
Results next month ? |
Nice post episurf
Sounds as though Slingo is the "Flagship" |
Segal is a well-rounded industry veteran who has spent most of his career at Gaming Realms. He started as Chief Financial Officer in May 2013 and stayed in the role until his promotion to Chief Executive Officer in February 2023. Gaming Realms has been expanding rapidly, partnering with operators all over Europe and beyond, including 888, Casino Gran Madrid, 711.nl, Betsson and others. Today, we have a sit-down with Segal who will walk us through his plans for the company and what he has in store next, with North American markets being a big focus.
Q: Congrats on the new role! You take over the helm at a time of strong growth for Gaming Realms, what can we expect in 2023 and beyond to retain that trajectory?
Thank you. I should probably start from last year’s momentous growth, as 2022 saw us significantly expand across new regions, release a host of new games and build upon the Gaming Realms brand. This year, we will continue to develop these core components of our growth strategy.
We entered 2023 with a diverse pipeline of commercial agreements that will see the delivery of our content across numerous new and existing regulated markets. Among other things, we will partner with leading operators in Ontario, a region where we have had a strong start since it regulated last year. Continuing the momentum across North America, we will expand our footprint with additional agreements in Pennsylvania, Michigan and New Jersey. Our presence in Europe will also be bolstered in 2023 as we further our reach in countries such as Italy, Spain and Denmark, and make our debut in Portugal and Greece later in the year.
Additionally, Gaming Realms has recently forged agreements with popular brands such as Tetris and Space Invaders. These will follow other popular IP launches like Slingo Cleopatra, a collaboration with one of the biggest slot brands across both the land-based and online sectors with, IGT’s classic receiving a Slingo interpretation.
Q: Are there any areas that will be a priority for you as you take over as CEO?
My focus and aim for the company is to become a leading supplier in the iGaming industry. We have an emphasis on making Slingo a premium must-have product that has become vertical in its own right. We aim to deliver first-class titles supported by account management data that we use to make our games more engaging for the benefit of our operator partners and players.
The US and North America have become top priorities, now representing our leading market, and we’re still experiencing a lot of growth there. As talk of new states opening in the near future increases, we will very much focus on expanding into those states and mirroring the success we have found in already regulated parts of the US.
Q: You have been with Gaming Realms for almost 10 years, how do you reflect on the company’s journey so far and what have been the highlights?
I am one of the founding members of Gaming Realms and we’ve had a really interesting journey in the last decade. Originally, we set out with the aim of bringing bingo onto mobile devices and in time, that developed into the Slingo offering. Slingo finds itself as the perfect cross-sell product somewhere in between the bingo and slots verticals whilst also delivering the mobile focus we initially wanted to achieve.
For me, the highlight is where we currently are. Slingo as a category is well-recognised, and we have a great reputation in the industry while our titles are consistently enjoyed by global players. The position we hold now is fantastic and it’s something that everybody in the company has immense pride in being a part of, as Slingo continues to develop.
Q: Slingo is now a well-established brand in the industry, what is key to the brand’s success?
One of the key components of Slingo’s success is its heritage in the gaming market, as it was developed around 30 years ago. It has been free to play, it had its own portal many years ago, and it was licensed by Zynga in 2012. Additionally, Slingo is present in the land-based market with IGT, and branded on physical lottery tickets in over 40 US states, demonstrating the power and familiarity of the brand.
Because of this strong heritage, the mechanic has developed a loyal fanbase who are always keen to try the new innovations and iterations that we deliver to the core gameplay with each new release. This mechanical format and focus provide more interaction when compared to a standard slot or bingo as it offers an immersive experience for the player. It has worked fantastically with well-established brands and IPs such as Centurion or Deal or No Deal offering familiarity, that can transcend the iGaming industry.
Slingo has also become a gaming category in its own right. Looking at our international operator partner platforms, players will find that Slingo has its own tab alongside other verticals like Slots and Live Casino.
Q: Gaming Realms has released a string of popular releases utilising recognisable IPs, is this an area you want to continue to develop?
We’ve had multiple announcements already this year of our use of recognisable IPs. We just launched Slingo Cleopatra, created using one of IGT’s biggest hits – Cleopatra. We have also recently licensed Space Invaders and Tetris, with Slingo versions being rolled-out later this year. These are both extremely successful video games with worldwide fanbases that we will leverage.
Additionally, we have seen great success with Rainbow Riches in the UK and Lucky Larry’s Lobstermania, which are typically land-based brands. Operators appreciate these licensed games as much as our players enjoy engaging with them because they can utilise these familiar games, brands and titles to aid in the acquisition of new audiences to their sites.
We will also continue to make new innovative Slingo titles of our own that don’t use pre-established brands and these will blend well to create a dynamic portfolio of titles.
I am very excited about what the team will deliver over the next 12 months with a packed games roadmap and an array of commercial deals that will mark significant progress as we continue our journey to become a leading supplier to the industry. |
We’re excited to announce that we’ve continued our expansion into the Ontario market with the launch of the province’s lottery operator OLG, a member of the World Lottery Association (WLA). Our games are launching through our integration with our North American partner, Light & Wonder. Thanks to everyone who worked on this Richard Brilli, Andrew Darley, Michelle Z., Byron Bridger, Chris Rath, Craig Falciglia, Jordan Palamar & Paul S.
Source linkedin
Also
Mobile-focused gaming content supplier Gaming Realms has extended its licensing partnership with Inspired Entertainment by an additional three years following the success of its pre-existing deal.
Through the deal extension, Gaming Realms will begin developing a third Slingo title to go along with the previously produced games including Slingo Centurion and Slingo Reel King.
The new game will be a Slingo variant of Inspired’s slot title Gold Cash Freespins.
Claire Osborne, Vice President of Interactive at Inspired Entertainment, commented: “We are thrilled to strengthen our successful collaboration with Gaming Realms, both by extending our partnership and by licensing Inspired’s number-one hit slot, Gold Cash Freespins.
“We look forward to seeing the concept that the Gaming Realms team will put forward.”
The new extension with Inspired is part of Gaming Realms’ business strategy to deliver unique content and extend the player experience for its partners through the use of licence IPs.
“Our partnership with Inspired has been hugely successful, with Slingo Centurion and Slingo Reel King being leading performers in both Europe and North America,” added Gareth Scott, Chief Commercial Officer at Gaming Realms.
“We are very excited to further extend our collaboration with Inspired to bring another new title to the market, utilising the popularity of Inspired’s content in both the online and retail sectors and boosting the player experience with our Slingo format.”
Last month, Gaming Realms signed a licensing agreement with Japanese video games and arcade firm Taito Corporation to create a Slingo Space Invaders title.
Source casinobeats |
Absolutely a Superstar what a performance |
Marvellous win. What a horse Michael has, one of the greats |
Hi Gipps, stockmarket is a different beast now especially AIM so no idea even good results don't seem to move a share upwards so many companies issue regular RNS to boost their share price temporally I prefer results to noise and quite happy to buy on dips
I agree lots of deals i imagine they take time to bed in and gain traction
I just hope someone doesn't see it as a opportunity to put a derisory offer in |
Hi Epic when will the market recognise the value in this they were 45p at one point and since then there has been plenty of deals done and more in the pipeline |
888 has facilitated an expanded presence in the US state of Michigan for Gaming Realms, with the provider to launch a range of content alongside SI Casino.
Furthermore, the online gambling operator’s 888poker brand has also announced the recovery of a record amount from gaming integrity reviews through the past year.
Sports Illustrated broadens Gaming Realms’ US reach
The gaming content provider will expand its presence in the Wolverine State alongside the recently launched, and Sports Illustrated branded, SI Casino, which is owned and operated by 888.
Under the terms of the partnership, the igaming site will gain an additional content uplift courtesy of titles such as Slingo Sweet Bonanza, Slingo Lucky Larry’s Lobstermania and Slingo Deal or No Deal.
Howard Mittman, 888 US President, noted: “Partnering further with Gaming Realms through our new SI Casino brand is a key part of our product and content leadership strategy in the US.
“This collaboration will help us to provide unique and exciting experiences to our players in Michigan, and we look forward to continuing to work with the Gaming Realms team.”
This latest tie-up in the state for Gaming Realms comes after the group made its debut in the region during 2022, and expands an ongoing partnership with the operator group.
The two companies have also partnered-up in Spain, Denmark, Sweden and New Jersey across the last three months.
Craig Falciglia, Director of Business Development at Gaming Realms, said: “We are excited to once again partner with 888 and to deliver innovative slots that offer unparalleled engagement through decision-based choices to their customer-base in Michigan.
“This collaboration through SI Casino further builds upon our flourishing relationship with 888, having already received positive feedback from similar global agreements with the operator.”
888poker recovers ‘record amount’ from integrity reviews
888’s online poker room has also disclosed that it has returned $287,292 of refunds to players through 2022, which have been recovered from accounts that have been deemed to have violated its fair gaming policy.
In addition to detailing progress on the issue of bots and RTA, software programming used to create unfair advantages over real-life players, 888poker also noted that it also “detected players colluding with each other for unfair advantage”.
In total, the operator refunded 6,801 players with $287,292, which represents a 32 per cent uptick year-on-year, averaging $42 per player.
Matan Krakow, Head of Poker Offering at 888poker, explained: “At 888poker, we take the issue of game integrity very seriously. This year, as a result of our continued investments in technology, cooperation of our players, and hard work of our teams, we have increased the detection rate of bot accounts, RTA and collusion to give back almost $290,000 to players.
“In the year ahead, we will continue to focus on this area to ensure that customers have a fair, safe, and entertaining experience when they play with 888poker |
I’m surprised by the lack of news from the company. They have appointed a new CEO but we’ve heard zero from him. I’d like to know what his strategy is? What is his aims and objectives? How should we measure his performance? |
Mobile-focused slot supplier Gaming Realms has inked a licensing agreement with Japanese video games and arcade firm Taito Corporation.
Under the terms of the alliance agreement, the duo will work together to create a Slingo Space Invaders title, with Gaming Realms utilising Taito’s IP of the 1978 titles, considered to be “one of the most influential video games of all time”.
Craig Falciglia, Director, Business Development of Gaming Realms, commented: “We are thrilled to be working with Taito on this exciting new project, combining the timeless appeal of Space Invaders with the unique gameplay of Slingo to create an immersive and engaging gaming experience for all players.”
Gaming Realms’ will launch Slingo Space Invaders through its international operating partners, as well as across its social publishing business.
This latest agreement coincides with numerous other titles that harness the popularity of blockbuster IPs that have received a Slingo interpretation. These include Slingo Deadliest Catch, Slingo Shark Week and Slingo Deal Or No Deal.
Tsuyoshi Nishiwaki, Executive Officer of Taito Corporation, commented: “With Space Invaders celebrating its 45th anniversary this year, we are overjoyed that it still brings fresh experiences to new audiences and gaming formats.
“We feel that Slingo and Space Invaders will make a great partnership, and we are excited to see our iconic pixelated Invader characters manifest in this established platform.” |
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