Gaming Realms Share Discussion Threads

[qs99] 10/5/2024 14:47

Have bought a few, looks a fascinating graph, either market buying into delivery, or takeover IMO! DYOR

[gipps] 10/5/2024 13:35

Well these were at 45p some time ago when they were earning much less money than they are today.

[sailorsam1] 10/5/2024 12:49

Given the rapid growth this should be alot more than 10x

[brownie69] 10/5/2024 12:06

The postive move continues. Id argue this is only just reaching the level where it deserves to be.

Using £13.5m adjusted Ebitda for 2024 and 12x gives us around 54p share price.
Even at 10x its 45p and that is far from demanding given the groweth rate.

Good volume recently is always good to see as sellers are getting accomodated.

[epicsurf] 08/5/2024 17:27

Nice volume today and a couple of chunky late buys

[epicsurf] 03/5/2024 17:40

NetBet Denmark has agreed a deal with iGaming supplier Gaming Realms.

Gaming Realms develops, publishes and licenses mobile gaming content with a variety of games in its portfolio, with its Slingo games said to be some of the more popular ones among its players.

A Slingo game is an online single and multi-player game that combines elements of slots and bingo.

Through this deal, NetBet Denmark players will be able to participate in a range of games from the developer, including Slingo Rainbow Riches, Slingo XXXtreme and Slingo Centurion, as well as other games of different formats.

Prior to this, last month alone saw NetBet significantly expand its presence in Denmark.

In the region, it agreed deals with Amusnet Gaming, G Games, Nolimit City, Play’n Go, Stakelogic, Wazdan, Habanero and Pragmatic Play.

NetBet Denmark’s PR Manager Claudia Georgevici said: "At NetBet, we understand that Slingo games are incredibly popular with our players. That’s why we aim to provide them with the widest possible range of these games, so there’s always something new for them to enjoy.

“Gaming Realms have an excellent range of Slingo titles and have established themselves as an influential figure in online gaming, which makes them the perfect partner for a mutually beneficial and productive relationship."

In other partnership news this week, Kambi Group has agreed a long-term on-property sportsbook deal with Mohegan to provide its sportsbook at two retail locations in Pennsylvania.

Gaming Realms has had a busy March and April. At the beginning of the period, the Company’s commercial team attended Enada, a gaming exhibition in Italy, where the team enjoyed networking with other industry experts. Gareth Scott, the Company’s Chief Commercial Officer, also attended SIGMA America’s in Brazil. Additionally, in March, Gaming Realms hosted a ‘lunch and learn’ to celebrate International Women’s’ Day. Continuing to champion women, Gaming Realms’ regional account manager, Mariachiara Lagravinese interviewed with both Gioconews and Gaming Intelligence. The Company have also seen four employees nominated for Women in Gaming Awards.

At the beginning of April, the Company announced its Annual Results for 2023, which saw a 26% increase in revenue and coverage of these positive results was published in the Independent, Proactive Investors and iGaming Business.

The last few months have also been full of exciting award nominations for the whole team including being shortlisted for Casino Content Supplier of the Year at the Italian Gaming Awards 2024, Gaming Licensed Content and Game Retro Style at the Casinobeats Game Developer Awards and Mobile Supplier at the EGR B2B Awards.

Games

Gaming Realms was off to the races in early April with the launch of Slingo Constitution Hill to celebrate this year’s Grand National. Also in April, the Company launched Slingo Gold Cash Freespins. Finally, Gaming Realms went live with Slingo Capital Gains. This new game offers a blend of the popular AGS slot Capital Gains, paired with Slingo’s famous format, giving players an exciting fusion of cash prizes, bonus rounds and big jackpots.

Operators and Market Expansion

In Europe, the Company has gone live in Spain with Casino777, Casino Barcelona and Bettson Spain and with WINNITT in the Netherlands. In the UK Gaming Realms has gone live with Benconstruct and with DAZN which also went live in Spain during this period.

Over in the USA, the Company went live with Fanduel and Mohegan Sun in Pennsylvania whilst over in Michigan Gaming Realms went live with Fanatics.

[death by donut] 25/4/2024 21:10

Lol only just opened Shares mag amd there it is :-)Tough day on site today :-)DbD

[death by donut] 25/4/2024 20:59

Thanks Epic .DbD :-)

[epicsurf] 25/4/2024 18:40

It didn't but shares a lot of the same principles for a GARP stock
An undemanding valuation
Turning to the rating, Gaming Realms looks relatively attractive. The PEG ratio – the price/earnings ratio divided by EPS growth – is the key metric on the GARP screen, and we use two variations on this. First is a two-year forward PEG ratio. Second is a blended PEG, which considers past and future earnings growth. Gaming Realms has a forward and blended PEG ratio of just 0.4 times.
Thank you shareideas1,
Headline from share magazine
Buy underappreciated Gaming Realms before the market recognises its true worth
Licensing revenue grew 20% year over year in the first two months of 2024
It's been quite noticeable recently that GMR is getting
More coverage from a variety of publications and online podcasts

[shareideas1] 25/4/2024 18:38

There is a two pager piece in the Shares Magazine today

[death by donut] 25/4/2024 16:54

Out of interest did the article mention Zulu ?Thats why I bought the other week as it's the only one thats turned up on that filter for ages.DbD

[doc martens] 25/4/2024 15:13

I don't have access to IC, but presume it was a positive article judging by the share price today.

[epicsurf] 25/4/2024 11:59

Couple of pieces
We are thrilled to have gone live with Casino Barcelona in Spain 🇪🇸
Also, quite a long write up in investors chronicle

[nobull] 19/4/2024 11:00

Doc Martens, many thanks for that info on the director stakes. I will report back when I have researched what average price the directors paid for their stakes - it will take me months to understand remuneration reports, share option incentive schemes, etc. and some of the information may not even be publicly available for all I know - especially founder member stakes obtained pre-IPO, I wonder. Yes it is easy to read RNSs on director stake purchases, but a thorough understanding of just how incentivised they are requires quite a bit of work. Yes, I knew about Mark Blandford's purchases at around 35p, a contributory reason to my purchase.

High operational gearing (a synonym for the "build once, sell many times" business model, perhaps because of the high proportion of fixed costs arising from the annual amortisation charge), high forward PE (about 20 at the time of my purchase, which was before the latest results) and the speculative risk rating are all good reasons to expect share price volatility (no excuse to grumble about it - goes with the territory) even if the general share price trend turns out to be broadly sideways for the next few months or even year, perhaps until the 2027 forecasts come out. AIMO. DYOR.

Thank you, Epicsurf. All your posts are informative. It is a very interesting business, albeit a new departure for me from the sort of businesses I normally invest in. It will be a great learning experience, and if I am lucky, a profitable one. We will see.

[epicsurf] 18/4/2024 18:41

April 4, 2024, 2:31 PM BST

An online gambling company has sued two former members of staff and its rival for allegedly plagiarizing copyrighted source code for its "Slingo" online betting game to produce several competing products
Haven't got access to Full article
And yes great post nobull

[doc martens] 18/4/2024 12:20

Hello nobull,

Great post. Just my 2 pence worth regarding managements holdings.

Michael Buckley Executive Chairman – 25,700,000 – 8.75%
Mark Blandford - Non-Executive Director – 12,598,738 – 4.29%

Between July - August 2023 Mark Blandford purchased 869,738 shares £303,194.04 at a total average price of around £0.35p (obviously higher than todays price).
Although given his total holdings its probably not a huge amount to him, but I'm sure its not an amount he would want to lose. He must have some faith in the future of the business to have made those purchases.
It was one of the reasons I invested, although I only have a tiny holding. Happy to hold to see what the next 12 months bring.

[nobull] 18/4/2024 09:01

New consensus analysts' forecast for FY2026, a period for which there was no forecast before.
Figures from Factset:


Growth is slowing, but an FY2026 PE of about 7.85 (EY 12.7%) seems reasonable IF the business becomes a zero growth business thereafter, given the risks of a management that does not have a big stake in the business (I presume they sold out on listing and are already multimillionaires and therefore have no need of making any more money and maybe could not give a toss about us, for all I know - I am a new shareholder and have never met them) a management who let idle cash just pile up, and where there has to be doubt whether they will deploy our cash profitably and where there has to be doubt whether we are becoming a lifestyle company.

I have boobed buying at 35.2p but I do not have a proper understanding of this business and continue to hold. Always interested in knowledgeable people's views, bullish or bearish.

I think one attraction must be the operational gearing - although gearing works both ways, right? - and another maybe is extracting value from tax losses that are off balance sheet, well the ones that are not already recognised in the deferred tax asset.

I guess the reason we have a "speculative" risk rating is the OG; for it is not because of having net debt; we are net cash.

What I like about this business is, unlike a traditional one-armed bandit machine in a fun fair, we are open for sales revenue 24/7, and not closed on Mondays and Tuesdays or whatever, and we are earning a decent amount of US$, not all £ that are likely to plummet in value when Rachel Reeves is in charge. JMV, with no expertise in the matter.

[epicsurf] 17/4/2024 17:43

Vox Markets Fund Manager Series: James Taylor of M&G Investments
Gaming realms gets a mention around the 42 min mark

[smalljobs] 11/4/2024 19:13

I agree with you Garmin1, but some things are very strange. After getting the results, which are very good, more than 12 million shares have been sold and the price dropped from 35+ to 29. Now we have someone playing funny games. After we had big lots sold for 31p, somebody is selling/buying many lots of 5 shares, 1 share, etc, for 29, disturbing the market price overall. You will excuse my lack of knowledge, but this is strange. Realistically looking, the company can’t produce better results than they have, and the shares are not going to go over 40. So management has 3 choices, to sell the company, to merge, or to buy another company. Otherwise, we are going to be snapped up by someone for barely over 40p. Not many shareholders are going to complain if they can walk out with over 40p per share. People are tired of this company, there’s simply no appetite.

[garmin1] 11/4/2024 12:51

No issue with the accounting aspects of the company but the possible red flag for me was the answer provided by the CEO to the drop in New Jersey revenue. The answer was really vague, in my view. It seemed to imply we had been unable to launch new products in the state due to platform issues. Why is this not being communicated within the reports? The CEO implied this was temporary and that he expected revenue to increase following resolution of this issue. I’d have liked a more detailed description of situation.

I also found the answer to the utilisation of cash unconvincing. Surely they have plans for this? I don’t believe buy backs or a dividend is realistic for this company, so I’m amazed the CEO suggested this as a possibility.

I’ll hold just now until the mid year update but the management team aren’t inspiring me at this time. This company should be looking to grow quickly and be leveraging the strength of a fantastic product.

[pj84] 10/4/2024 23:36

This was from the auditor's report from the Annual report and Accounts 2022 and I would expect it to be the same when the Annual report and Accounts for 2023 are published.

"Capitalisation of development costs (with reference to notes 1 and 14)

The Group incurs material expenditure on the internal development of intangible
software assets. Such expenditure should only be capitalised when it meets the criteria of applicable accounting standards.

Due to judgement being required by management in determining costs that meet the criteria for capitalisation, this was considered to be an area of focus for our audit, and hence a Key Audit Matter.

Capitalised development costs in the year were £4.0m (2021: £3.4m).

Our procedures included the following:

- We assessed whether the capitalisation policies adopted by the Group comply with applicable accounting standards.
- We challenged management’s project analysis to check that the projects capitalised met the criteria of applicable accounting standards. This included:
• Agreeing a sample of costs capitalised in the year to source documentation;
• Agreeing the accuracy of time capitalised to related timecards and payroll
records; and
• Inspecting evidence of the projects subsequent launch or intention to launch.

Key observations
Based on the work performed, we consider management’s judgements to be appropriate and adequate."

[pj84] 10/4/2024 23:15

I should add that I didn't mention EBITDA in my post and focussed on revenues, PBT and cash. Having said that I didn't notice anything of concern unless you are also referring to the amortisation of development costs being recognised after EBITDA but before PBT.

[pj84] 10/4/2024 23:02

Yes, if it was a company using opaque accounting practices to create profits but cash was always reducing, then I would be concerned but clearly they increased cash by £4.6m in the period.

They are treating the development costs of games as an asset which they are expensing over 5 years and as they clearly showed the revenues from those games start to rise over a number of years and continue to generate revenues even after the costs have been fully expensed after 5 years.