Gaming Realms posts profit after offloading affiliate assets
Published 1st July 2019
For the 12 months through to December 31, 2018, continuing revenue was down from £7.6m to £6.2m, down from £7.6m in the previous year as Gaming Realms was hit by a decline in social publishing revenue.
However, licensing revenue, comprising its igaming content including Slingo-branded products, rocketed by 167% from £800,000 in 2017 to £2.2m, as the developer went live with 17 new partners during the year.
Gaming Realms was able to cut some costs, with continuing marketing expenses down from £2.3m to £665,363, administrative costs from £7.5m to £4.9m, and operating expenses from £1.5m to £901,807.
Although continuing loss for the 12 months stood at £5.6m, Gaming Realms was boosted by discontinued operations, which posted a collective profit of £6.6m. This in turn led to an overall profit of £929,305, compared to a loss of £8.2m in 2017.
Gaming Realms sold its affiliate marketing business in March 2018 due to what it described as a difficult UK regulatory environment. The developer also offloaded its B2C real money gaming business in July 2018 for the same reason and, in February 2019, exchanged contracts to sell the remaining B2C RMG business.
The developer expects to complete the sale of the remaining real money gaming business shortly, after which it will focus more on the development and licensing of games for third-party real money and social gaming operators.
Patrick Southon, chief executive of Gaming Realms, Gaming Realms, said: “We began our licensing business in 2017 as part of a strategy to fully capitalise on the strength of our games development operations.
“In a period of 24 months, we have developed, licensed and launched 34 games via major gaming partners such as GVC and 888 and captured over 3.5% market share in New Jersey.
“As a result, and post the imminent completion of the sale of the remaining B2C RMG business, we are looking forward to focusing solely on increasing the cadence of game development and licensing delivery as more B2B partners come online.”