Gaming Realms PLC (LON:GMR) has predicted that revenues for its current year will be “mostly ahead” of its expectations, as it also revealed that its chief executive will be stepping down with immediate effect.
The developer of mobile gambling games said its performance had been driven by its content licensing business, which had added eight new agreements during the year, while the improved revenues and cost control meant it now expects to report an adjusted (EBITDA) loss for the year of £500,000.
READ: Gaming Realms founder steps down
Looking ahead, GMR said “positive momentum” had continued into 2020 with the launch of its content on the sites of Swedish mobile gaming firm Leo Vegas and UK bingo hall owner Buzz Bingo.
The company has also released a new game ‘Sligo Centurion' in partnership with global game tech group Inspired Entertainment.
In a note, analysts at house broker Peel Hunt reiterated their ‘buy’ rating and 16p price target, saying the EBITDA loss figure was “better than forecast”. They also estimated that the firm was “on track to become cash flow positive while diversifying geographically”.
CEO steps down
Meanwhile, GMR said its chief executive Patrick Southon had decided to step down with immediate effect.
Non-executive chairman Michael Buckley will become executive chairman until a replacement CEO is found and will be supported by the firm’s chief financial officer Mark Segal.
"During my six years as CEO, the main focus of the Company was on B2C real money gaming. However, with the last of those assets disposed of in July 2019, and the Company now stable and successfully implementing its new B2B focused game development and licensing strategy, I feel now is the right time for me to pursue a new challenge”, Southon said.
The shares were 16.5% lower at 7.5p in early trading on Tuesday.
--Adds broker comment and share price--