Gaming Realms 2024 Earnings: A Bullish Surprise

Gaming Realms plc (AIM: GMR) has just announced its annual results for the year ended 31 December 2024, and the numbers are nothing short of spectacular. The company reported a 22% increase in revenue and a 30% increase in Adjusted EBITDA, marking another record year for the mobile-focused gaming content developer and licensor. Let's dive into the details and see what this means for investors.

Revenue and EBITDA Growth

Gaming Realms' revenue for 2024 soared to £28.5 million, up from £23.4 million in 2023. This 22% increase is a testament to the company's strategic focus on content licensing, which saw a 23% rise to £24.5 million. Social publishing revenue also grew by 14% to £4.0 million. The Adjusted EBITDA of £13.1 million, a 30% increase from the previous year, highlights the company's operational efficiency and profitability.

Market Expansion and Strategic Partnerships

One of the key drivers behind this growth is Gaming Realms' expansion into new and emerging markets. The company has launched its content in the newly regulated iGaming market in Brazil and expects to launch its games with the lottery in British Columbia in Canada, as well as in South Africa in the coming months. This strategic move has allowed Gaming Realms to tap into new revenue streams and diversify its market presence.

Gaming Realms has also formed high-profile partnerships with brands like Fanduel, Fanatics, Danske Spil, Betclic, and Solverde. These partnerships have not only increased the company's market presence but also driven a 22% increase in unique players in the content licensing business. The launch of innovative content, such as Slingo Press Your Luck and Slingo Fowl Play, in collaboration with high-profile television and gaming brands, has further enhanced the appeal and popularity of Gaming Realms' offerings.

North American Performance

North America has become the largest market for Gaming Realms, accounting for 54% of the total content licensing revenues. The 59% growth in content licensing revenues in North America to £12.9 million is a significant achievement. This success can be attributed to the company's strategic focus on content licensing and market expansion. The launch of 12 new unique Slingo games and the granting of full iGaming Supplier Licenses in West Virginia and British Columbia have further strengthened the company's position in the North American market.

Financial Highlights

- Revenue: £28.5 million (up 22% from 2023)
- Licensing Revenue: £24.5 million (up 23% from 2023)
- Social Publishing Revenue: £4.0 million (up 14% from 2023)
- Adjusted EBITDA: £13.1 million (up 30% from 2023)
- EBITDA: £12.3 million (up from £9.2 million in 2023)
- Profit Before Tax: £8.3 million (up 61% from 2023)
- Year-End Cash Balance: £13.5 million (up from £7.5 million in 2023)

Outlook for 2025

Looking ahead, Gaming Realms is well-positioned to deliver further growth in new and existing markets. The company has an exciting pipeline of new partners and game releases and remains well-positioned for continued expansion and success through 2025. The Board is confident in the Group's strategy and expectations for the rest of the current year.

Conclusion

Gaming Realms' 2024 earnings report is a bullish surprise for investors. The company's strategic focus on content licensing, expansion into new markets, and high-profile partnerships have driven significant revenue growth and high margins. With a strong financial performance and an exciting pipeline of new partners and game releases, Gaming Realms is well-positioned for continued success in the mobile gaming industry.