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Gaming Realms On Track To Meet Targets As Interim Loss Narrows

LONDON (Alliance News) - Gaming Realms PLC on Wednesday reported a narrowed loss and growth in ...

Alliance News 19 July, 2017 | 11:45AM
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LONDON (Alliance News) - Gaming Realms PLC on Wednesday reported a narrowed loss and growth in revenue in the first half of 2017, and said it is on track to deliver full-year results in line with the board's expectations.

The mobile real money and social games developer said adjusted earnings before interest, tax, depreciation and amortisation, excluding disposals, improved to a loss of GBP900,000 in the first half, from a loss of GBP3.6 million the year before.

Revenue, also excluding disposals, grew to GBP15.7 million from GBP14.9 million.

In the first half, Gaming Realms agreed new B2B content licences for its Slingo Original portfolio of games in the US state of New Jersey, and launched new real money gambling sites for ITV PLC's dating show 'Love Island' and Channel 4 game show 'Deal or no Deal'.

"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 GBP1.0 million from investors in the relatively short term," the company said.

Gaming Realms added that it has agreed an amendment to its asset purchase agreement with RealNetworks Inc for the purchase of RealNetworks' assets in 2015.

Gaming Realms bought RealNetworks' assets in July 2015 for a total consideration of USD18.0 million, of which USD10.0 million was paid on completion, with the other USD8.0 million to be paid in two deferred tranches of USD4.0 million, payable one and two years after the deal was completed.

The first deferred tranche of GBP4.0 million was paid last year and the second deferred payment was due to be paid by August 10, 2017. However that second tranche has now increased in value and will be paid later than originally planned following an amendment.

Under the amendment, Gaming Realms will now pay RealNetworks a final payment of USD4.5 million - rather than GBP4.0 million - by December 15, 2017, and is negotiating "suitable longer term debt financing" to settle the sum in advance of that date. No reason for the rise in the tranche was provided by the business.

Gaming Realms will announce its first-half results on September 13.

Shares in Gaming Realms were trading down 6.3% at 11.25 pence on Wednesday.

By Karolina Kaminska; karolinakaminska@alliancenews.com; @KarolinaAllNews

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Gaming Realms PLC 7.00 GBX 1.45 -

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