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Gaming Realms Sells Affiliate Business, Becomes Earnings Positive

LONDON (Alliance News) - Real money and social games publisher Gaming Realms PLC said on Friday ...

Alliance News 23 March, 2018 | 11:26AM
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LONDON (Alliance News) - Real money and social games publisher Gaming Realms PLC said on Friday it has sold its affiliate portals bingeport and freebingohunter to 1ST Leads Ltd for GBP2.4 million.

The sale is in line with Gaming Realms's strategy to focus its resources on its real money and content development businesses, especially in the face of the affiliate market becoming more competitive, marked by the business contributing GBP900,000, down from GBP1.1 million in 2016.

Proceeds from the sale will go towards the ongoing marketing of its real money gaming brands and further development of new content.

In addition, with the restructuring of the social gaming business, the company is now earnings before interest, tax, depreciation and amortisation positive at GBP700,000 for 2017, swinging from a loss of GBP1.7 million, even as revenue dipped to GBP31.6 million from GBP32.0 million.

Gaming Realms expects Ebitda growth in 2018, however acknowledged that the sale of Bingoport will reduce Ebitda in the short term, which is expected to be offset by the benefits of recently signed licensing agreement and gaming partnerships which is set to come through later in the year.

"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," said Chief Executive Officer Patrick Southon.

Gaming Realms will publish its full-year results in early May.

Shares in Gaming Realms were down 4.0% at 9.70 pence on Friday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Gaming Realms PLC 7.45 GBX 7.97 -

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Alliance News

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