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Gaming Realms swings to profit as company sheds affiliates
Mobile gaming publisher and developer Gaming Realms reported it had swung to a positive underlying profit for 2017, despite revenues falling compared to the previous year.
The £31.6m of generated revenue in 2017 represented a 1.25% decrease compared to 2016, while the newly positive earnings before interest, tax, depreciation and amortisation of £0.7m compared with a loss of £1.7m the previous year.
Gaming Realms sold its affiliated portals Bingoport and Freebingohunter for an overall total of £2.4m as part of the AIM-traded company's refocus on real money gaming and content development businesses.
Real money gaming grew by 5.5% through the year but social gaming revenue fell by 13% despite the launch of Slingo Arcade, a new app based on the company's Slingo Originals games.
Chief executive Patrick Southon said: "2017 was a year of significant developments, with the company delivering maiden positive EBITDA and successfully focusing resources towards real money gaming and licensing our Slingo Originals content to improve margins. The disposal of the affiliate portals marks the completion of this transition, and with further licensing opportunities to follow, we believe that the company is in line for improved bottom line growth in 2018."
Since the beginning of the new year, the company has signed licencing agreements with Ladbrokes Coral, 888 Holdings, Gaming innovation Group and Leander Games as the company seeks to broaden the distribution of its Slingo content.
As of 0936 GMT, Gaming Realms' shares were down 0.99% at 10.00p.