Gaming Realms PLC (AIM:GMR, OTCQX:PSDMF) reported a year of strong growth, with revenue rising in both core content licensing and non-core social segments.
CEO Mark Segal highlighted a “revenue increase, increase in our core content licensing business,” alongside gains in adjusted EBITDA and net profit, underlining operational leverage within the business.
The company's flagship Slingo titles drove momentum, with 12 new releases in 2024 and North America contributing 54% of licensing revenue.
Segal also discussed the addition of third-party studio content, including Real Play, For The Player, and upcoming partner S Gaming, helping diversify offerings and penetrate high-barrier markets like the U.S.
Cash generation remains strong, with a £13.5 million balance and a share buyback program underway. Looking ahead, Segal said the company expects continued organic growth, expansion into South Africa, and new launches with British Columbia’s lottery.
Proactive: Mark, very good to speak with you. You're out with your 2024 results this week and a strong start, a strong year for the company and more to come it seems?
Mark Segal: Yeah, we're really excited. It's sort of been a real pleasure this week to be announcing, revenue up, our 2024 numbers with revenue increase, increase in our core content licensing business. Our non-core business of social is also up. Adjusted EBITDA’s up, our net profits up more so that bigger increases have shown the operational leverage we have in the business.
Cash is increased as well with cash generative and also to be able to announce the share buyback as well. So yeah, they're really good. On top of that, 22% growth in the first two months of 2025 versus the comparative period as well.
Proactive: So you talked about your revenue growth. And most of that, as you said, was from licensing revenue — up 23% to £24.5 million. And a big focus on North America — that makes up 54% of your licensing revenue now.
Mark Segal: Yes. And that's been the biggest growth in the year. Again, over 50% growth in that market. We are in five regulated states in the US now, which includes West Virginia, which went live during the year. We have a really good relationship with our partners. Our Slingo brand and IP was born in America, and it's a game which is loved by the players in that market as well as other markets as well.
Proactive: Now, you launched 12 new Slingo titles over the course of the year. So helping to drive that momentum.
Mark Segal: Yes, that's right. Actually, the cohorts of games we built in 2024 has probably been our highest grossing sets of games in the first year. Which is something that's going to be very important in the future years as well, because that portfolio will continue to generate revenue and will launch with new partners. So yeah, that's really exciting.
Proactive: You also launched content from a second third-party studio, Real Play. Tell us about the strategy there and how that dovetails with your own content.
Mark Segal: Yeah. So Slingo is quite a unique game format and a very strong IP. We actually in other areas license that IP to adjacent markets, which we'll come into, but Slingo is part of the experience players have on their casino sites — and slots are also the most popular form. So we are partnering with what we think are very high-pedigree studios.
Real Play being the second, and the first one For The Player, to take their games and distribute into the US market where A: we're the strongest but, B: we have really good distribution in that market. It’s quite a high barrier for new studios coming to the market. So we can really help partners. We signed with a third studio as well called S Gaming, and we will be launching with them hopefully towards the end of this year.
Proactive: So Mark, apart from that big focus on the United States, you also entered Brazil in January. Is that a prominent market for the company?
Mark Segal: I think it will be in time. It's a brand-new regulated market. It launched its regulated market at the beginning of January, actually. So we're very fresh into the market. We are live with four or five partners now. We've got a handful of our portfolio, and we will look to bring more games to market — themes that we think will work with the market.
I think, you know, we're talking in a couple of years’ time — hopefully I'll be able to say there's quite a material part of what we're doing.
Proactive: Mark, you mentioned that strong cash generation. You ended the period with a cash balance of £13.5 million. So, strong start to 2025 as well, as you mentioned. What else lies ahead for the company this year?
Mark Segal: So this year we will continue to do what we've been doing. We've been operating really well over the last couple of years. It's been organic growth. Yes, there are new market opportunities like Brazil. Hopefully, we’ll be able to be live in South Africa. We've got the lottery in British Columbia also that we hope to be going live with.
So there's the general growth in our plan now. We essentially like to target new markets, then growth within markets, and then working closely with partners with new games. And I think hopefully we'll see more of it. We touched on the distribution of third-party studios as well.
Proactive: Mark, I hope you'll keep us updated on any progress this year. Thank you very much for taking the time today.