Gaming Realms PLC (LON:GMR) sold its consumer facing business to Oslo-listed River iGaming for £11.5mln
Retains the Slingo brand and slingo.com intellectual property (IP)
Business now focused on development of games and worldwide licensing
Disposal of B2C was for £11.5mln cash compared to current market cap of £12.2mln at 4.3p
How is it doing
Gaming Realms’ focus is building and licensing new games, B2B partnerships and broadening the reach of its very successful Slingo format.
Patrick Southon, CEO, reckons it will take 18 months for the River iGaming deal to wash through fully, but by then the potential of its licensing side should be clear.
For example, Southon expects the Slingo name to become generic for all bingo-style mobile games.
“We are a start-up now in some ways, but we have a great opportunity and the cash now to do it.”
Trading results for 2018 are expected to show revenue and adjusted EBITDA in line with market expectations, with an adjusted EBITDA loss of approximately £0.7 million (unaudited)
Licensing revenue rose by 200% in 2018 and was running 118% a year earlier in the first six weeks of 2019.
Tough market for B2C
The new UK regulatory environment, together with increases in point of consumption tax, has made it increasingly difficult to operate a sole UK-facing casino and real money platform, said the company.
What the boss says: Patrick Southon
“The acquisition of the Slingo brand and IP in 2015 has enabled the company to become a highly regarded developer and licensor of games in the international gaming market.
“This is a high growth market and one that the board believes can be further developed for the benefit of shareholders."
- Completion of Bear Group sale with regulatory approval
- Focus on licensing, lower stake games where demand is strong
- Slingo very successful in the US – mobile bingo gap and more deals in pipeline
- Lots of demand from different operators
- Cash on balance sheet might mean a special dividend
Slingo straightforward to sell, just a question of integration onto other platforms
International revenues to grow and reduce UK risks where regulation is tightening
New partners in US and Asia, in particular
Licensing is lower revenue but much higher profits
Monopoly to launch – a variation of Slingo and highlights that just adding a new format creates a whole new game