Gaming Realms PLC (AIM:GMR, FRA:RNE1, OTCQX:PSDMF) expects full-year results will be in line with expectations after it made “exceptional progress” in the first half of the year.
The developer of mobile-focused gaming content said momentum is set to continue in the second half of the year with the group especially excited about its recent launches in Michigan and Pennsylvania in the US. Furthermore, the company is about to start the process to apply for a licence in Ontario, Canada, which has signalled its intention to regulate online gaming.
Total revenue grew 50% in the first half of 2021 to £7.7mln from £5.2mln in the same period of 2020.
Licensing revenue jumped 73% to £5.8mln from £3.4mln the year before, while social media revenue increased by 7% to £1.9mln from £1.8mln.
Adjusted underlying earnings (EBITDA) leapt 116% to £2.68mln from £1.24mln the year before. Profit before tax was £803,928 compared to a first-half loss last year of £692,578.
Cash plus cash equivalents at the end of June had risen to £3.92mln from around £850,000 a year earlier.
Following the group's successful launch in the Italian regulated market earlier this year, Gaming Realms has evaluated further European expansion opportunities and is preparing for launches in additional regulated markets in the second half of the year.
With a strong game development pipeline, a clear strategy to continue expanding its distribution internationally and with demand from the group's customers expected to continue, the board expects trading for the full year will be in line with market expectations and remains confident in the strategic outlook for the business.
“Having recently launched in Michigan and Pennsylvania, the group is now working to capitalise on the significant opportunities in these markets. We are also looking to strengthen our position in Europe through launches in other regulated markets following the encouraging response we have seen from players in Italy for our Slingo content,” said Michael Buckley, the executive chairman of Gaming Realms.
“Looking further ahead, we are about to start the process for obtaining a license in Ontario, Canada. Ontario has announced its intention to regulate iGaming and has the potential to be a bigger market for Gaming Realms than any one of the U.S. states that have regulated so far. In addition, we will also pursue further licensing opportunities within the U.S. as new States announce their intention to regulate iGaming,” he added.