Deferment of payment to RealNetworks
On track for profitable year
Gaming Realms plc (GMR.L), the developer, publisher and licensor of mobile real money and social games, today announces a trading update for the six months to 30 June and the deferment of its payment to RealNetworks Inc. (“RealNetworks”) until December 2017.
Trading update for the six-month period ended 30 June 2017 is outlined below. The Company is on track to deliver a result in line with the Board’s expectations for the year as a whole.
Financial highlights (unaudited):
|H1 2016||H1 2017|
|Revenue excluding disposals||14.9||15.7|
|Adjusted EBITDA1 (excluding disposals)||(3.6)||(0.9)|
1Before share based payments and restructure costs & excludes unrealised foreign exchange losses
H1 Highlights include:
- New B2B content licenses for the Company’s Slingo Original portfolio of games in New Jersey, USA, including Caesars Interactive Entertainment, GVC, Resortscasino.com, Pala Interactive and Rush Street Interactive
- Launch of new ‘white label’ real money gambling sites Dealornodealcasino.com and Loveislandgames.com in partnership with ITV and Storm games
- Social business integrated resulting in significant cost savings in the period
DEFERMENT OF REALNETWORKS PAYMENT
Gaming Realms entered into an Asset Purchase Agreement with RealNetworks Inc. dated 10th August 2015, which provided for a final payment to RealNetworks of $4m by 10th August 2017. The company is pleased to announce that this agreement has now been amended to provide for a final payment of $4.5m to be made to RealNetworks by 15th December 2017, and Gaming Realms will be negotiating suitable longer term debt financing to settle this sum in advance of this date.
CURRENT TRADING / OUTLOOK
With the H1 2017 adjusted EBITDA loss significantly reduced to £0.9m, the Board remains confident in its strategy and is on track to achieve the Board’s expectations for the year as a whole. The Board anticipates the Company will achieve significant positive EBITDA in the second half of the financial year with increased revenues, seasonal marketing costs reduced, and a full period of benefits from the integration of the social business. To support this growth, the Company anticipates raising approximately £1m from investors in the relatively short term
The Company will announce its interim results for the Period on 13th September 2017.
The Company considers that this announcement contains inside information for the purposes of the Market Abuse Regulation
|Gaming Realms plc
Patrick Southon, CEO
|0845 123 3773|
|Peel Hunt LLP
|020 7418 8900
|020 7457 2020|
About Gaming Realms
Gaming Realms, only founded in 2012, creates and publishes innovative real money and social games for mobile, with operations in the UK and U.S. Through its market leading mobile platform and unique IP and brands, Gaming Realms is bringing together media, entertainment and gaming assets in new game formats and driving market growth. The Gaming Realms management team includes accomplished entrepreneurs and experienced executives from a wide range of leading gaming and media companies who have significant experience of growing and managing business to a substantial size.