Future looks bright as business re-alignment begins to pay off
UK gaming firm Gaming Realms has generated impressive revenue growth, according to an interim results report for the six months ending June 30 2016, which it attributes to the success of its proprietary platform Grizzly and the acquisition of the social gaming assets from Real Networks.
Key performance highlights include:
– A 109 percent increase in revenue to GBP 16.6 million (H1/2015: GBP 7.9 million), of which Real Networks' social gaming assets contributed GBP 3.8 million of social and licensing revenues during the period.
– Real money gambling revenue on the Grizzly platform up 143 percent to GBP 10.2 million (H1/2015: GBP 4.2 million).
– Mobile usage dominates on Grizzly platform, with 84 percent of depositing players using mobile (H1/2015: 80 percent).
– Player take-up increased 269 percent with 143,282 new depositing players during the period (H1/2015: 38,869).
– Adjusted EBITDA of around – GBP 3 million, a decline of 24 percent (H1/2015: 2.4 million). Includes a H1/2016 front loaded growth investment in marketing of GBP 9.5 million related to the Group's ongoing investment in slingo.com and the launch of Britain's Got Talent games.
"This investment in marketing has been the key driver in the growth of our revenues and depositing players, and compares to GBP 5.1 million of marketing expenditures in H1/15," a company statement explained.
The Group has signed and launched a number of key initiatives which it believes will have a further positive impact on growth during the second half of 2016.
These include the launch of thexfactorgames.com and creation of a new game based on the television show, a B2B deal with Bauer Media for the co-promotion of SpinGenie.com and the launch of its Remote Game Server allowing the company to license its games to selected partners.
Patrick Southon, Chief Executive – Gaming Realms, said: "The Group has delivered an excellent first half as a result of focusing on our proprietary technology and games publishing and licensing".
The Board believes that the Group is trading in line with market expectations, which implies that the Group will be EBITDA positive for 2016, the statement concludes.
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