Interim Results

RNS Number : 0167A

Gaming Realms PLC

24 September 2015

 

Gaming Realms plc

(the "Company" or the "Group")

Interim results for the six months ended 30 June 2015

Strategy implementation generates 89% revenue growth

Gaming Realms plc, which creates, publishes and markets next generation online gaming products, today announces its interim results for the six months ended 30 June 2015.

Financial highlights

	H1 2015 £'000s	H1 2014 £'000s
Revenue	7,954	4,200
Adjusted EBITDA	(2,822)	(3,515)
EPS from continuing operations (pence)	(1.80)	(2.59)
Average monthly depositing players (number)	35,870	22,895
Average daily active depositing players (number)	7,108	3,852

• Significant revenue growth of 89% to £8.0m (H1/14: £4.2m) driven by continued success from the Group's proprietary platform and white label activities
• Real money gambling revenue up 419% to £4.2m (H1/14: £0.8m)
• EBITDA loss of £2.7m (H1/14: £3.7m) which includes marketing spend of £5.1m for the six month period (H1/14: £4.6m) as well as the continued cost of building our internal gambling platform in line with the Group's strategy.

Operational highlights 

• Mobile usage dominates player base on proprietary platform, with 80% of funded players using mobile
• Daily active players up 85% to 7,108 (H1/14: 3,852)
• Strong player take-up continues with 72,849 new depositing players during the period (H1/14: 71,266)

Post period end

• £12.5m placing in August 2015 to fund the acquisition of gaming assets from RealNetworks, Inc. ("Acquisition") providing the Group with a portfolio of internationally known casual gaming brands
• Enlarged Group, with post-Acquisition benefits from direct entry into the valuable North American market, creating an international platform for future growth and geographical expansion
• Acquired assets provide the Group with entry into the fast growing Social Casino Gaming segment of online gaming

Patrick Southon, Chief Executive, said:

"Mobile play has driven a very strong start to the year for the Group. The recent North American acquisition of gaming assets from RealNetworks, Inc., including GameHouse's social/mobile studios and their Slingo, Mahjong and Sudoku properties, complements each area of the Group's activities; and makes possible exciting new global opportunities. Our proprietary platform is delivering excellent results, keeping more mobile players engaged and returning for longer periods of time. We will soon be rolling-out more unique and exciting mobile focused content to continue our growth trajectory, creating additional revenue diversification for the Group."

Outlook

Our investment programme and targeted acquisitions have performed as expected over the period. The acquisition in August 2015 completes the creation of a strong base from which to drive revenues, profitability and geographical diversification.

In the two month period post 30 June 2015 to 31 August 2015, the Group has seen an increase in the average daily revenue to over £61,500 (versus an average daily revenue of £44,082 for the six months in H1/15). Following the Acquisition on the 10 August 2015, the Group has seen the daily average increase to approximately £74,000. The Board expects to see continued growth throughout the remainder of the year as we acquire new players, and through the introduction of new slingo and bingo variants on our proprietary platform.

The Group is in its strongest position to date. The performance of the real money Slingo game combined with the delivery of further unique feature sets on its core gaming platform means Gaming Realms is well positioned to continue its strong revenue growth. The additional revenue of Social Games and the appointment of Atul Bali to the executive team puts the Group in a position to capitalise further on the growth of mobile gaming in the UK and internationally.

With the strong performance in H1, and the addition of the GameHouse studios and assets, the Board remains confident that the Group is well positioned to maintain its impressive growth trajectory. The key focus will be to continue to scale the proprietary platform through unique content and player acquisition as well as expand the free to play portfolio with new exciting product launches. 

- Ends -

For more information contact

Gaming Realms Patrick Southon, Chief Executive Mark Segal, Chief Financial Officer	[phone]
Cenkos Securities (Nominated Adviser) Max Hartley	[phone]
Bell Pottinger Olly Scott James Newman	[phone]

About Gaming Realms

Gaming Realms is an online gaming business formed in 2012 to develop a new generation of social bingo and slot machine gaming concepts.

Gaming Realms was founded by the team behind Cashcade, which created the leading online bingo brand, Foxy Bingo, in addition to other online bingo and casino games. The success of Cashcade culminated in its sale to bwin.party digital entertainment plc for a total consideration of approximately £96 million in 2009.

Business review

Overview

The Board is pleased to report that the Group has made good progress during the first half of the year during which it delivered revenues of £8.0 million (H1/14: £4.2 million), up 89% over the comparable period and 40% higher than the second half of 2014. At the same time the Group has continued to invest heavily in its marketing strategy. Total marketing spend for the first half was £5.1 million (H1/14: £4.6 million) which, combined with operating costs, resulted in a loss before taxation of £3.5 million (H1/14: £4.2 million), in line with the Group's operational growth plan.

Operating costs increased in the period as a result of the successful launch of the Group's proprietary platform in September 2014, resulting in higher third party royalties, transaction fees and UK point of consumption tax ("POC"). Management has focused on growing real money gambling on the proprietary platform, which accounted for 53% of Group revenue in the period (H1/14: 19%).

New depositing players at 72,849 (H1/14: 71,266), continued to grow strongly with a shift in emphasis towards our proprietary platform which accounted for 51% of the players (H1/14: 6%) while the number of daily active depositing players grew 85% to 7,108 (H1/14: 3,852).

Casino & Proprietary Platform

Our proprietary platform continues to be the focus of the Groups' strategy. It is showing industry leading metrics, with 80% of players on mobile devices having over five times more sessions, driven by new features and functionality which have increased player engagement. The addition of Slingo Riches to SpinGenie has shown the success of deploying unique premium content and the game is now the platform's top performing game, accounting for 13% of total Gross Gaming Revenue.

SpinGenie continues to be the lead brand on the platform with growth of 266% between Q4/14 to Q2/15. It is a result of the social features on the site which have enabled increased player engagement, a strong marketing campaign in the six month period attracting new casual mobile players to the market.

In March 2015 we successfully migrated PocketFruity to the new proprietary platform and have been able to grow revenues by 72% post migration. As anticipated, adding brands to the proprietary platform increases its scale and accordingly reduces relative costs. Accordingly the Group will launch a further brand, slingo.com, on this in Q4 2015.

Social

After the period, the Group completed the acquisition, which included GameHouse US and Canadian studios; Slingo brands and patents; and a data science team from RealNetworks Inc. These attractive assets are expected to contribute strong revenues and players outside of the UK as well as a well-known popular social gaming format to monetise through mobile delivery.

The team will also bring social learnings and data science to the Group's proprietary gambling platform to enhance the features and monetisation of SpinGenie and PocketFruity.

White Label

Since the acquisition of Blueburra Holdings, the Group's focus has been on multiple brands to increase the playing time on our white label sites with Dragonfish as the operator. In June 2015 our white label sites had daily average active players of 4,066 (June 2014: 3,098) which is an increase of 31% period on period.

Iceland Bingo continues to be the leading brand and with 38% of the daily active players. We have launched three new sites in the six months to 30 June 2015, Lucky Charm Bingo, Cupcake Bingo and Candyshop Bingo and have been pleased with their initial launches. The new sites add scale to the white label business and allow cross promotion to maintain player engagement through the portfolio of sites.

QuickThink Media has been used for all player acquisition on the Group's proprietary platform as well as the white label sites. On top of this the agency business has been growing, through the execution of large campaigns for clients such as Iceland Foods and Macmillan Cancer Support.

 

Consolidated statement of profit or loss and other comprehensive income

for the 6 months ended 30 June 2015

	Note	6 months ended 30 Jun 15		6 months ended 30 Jun 14		15 months ended 31 Dec 14
		£		£		£
		Unaudited		Unaudited		Audited
Revenue		7,953,513		4,199,817		11,227,206
Marketing expenses		(5,051,713)		(4,598,367)		(10,205,720)
Operating expenses		(2,398,560)		(872,326)		(2,460,178)
Administrative expenses		(3,325,022)		(2,243,851)		(6,379,613)
Adjusted EBITDA		(2,821,782)		(3,514,727)		(7,818,305)
Acquisition costs		-		(37,500)		(140,773)
Profit on disposal of intangible assets	6	393,957		-		-
Restructuring costs		-		-		(80,839)
Share-based payments		(232,064)		(144,061)		(438,169)
EBITDA		(2,659,889)		(3,696,288)		(8,478,086)
Amortisation of intangible assets	6	(778,766)		(446,884)		(1,277,357)
Depreciation of property, plant and equipment		(16,957)		(14,333)		(41,252)
Finance expense	3	(81,444)		(4,573)		(57,355)
Finance income	3	6,495		11,702		14,601
Loss before tax on continuing operations		(3,530,561)		(4,150,376)		(9,839,449)
Tax credit	4	21,430		21,430		92,399
Loss and total comprehensive income for the financial period		(3,509,131)		(4,128,946)		(9,747,050)
Earnings per share
Loss per share
Basic and diluted (pence)	5	(1.80)		(2.59)		(5.90)

 

Consolidated statement of financial position

as at 30 June 2015

	Note	30 Jun 15		30 Jun 14		31 Dec 14
		£		£		£
Assets		Unaudited		Unaudited		Audited
Non-current assets
Property, plant and equipment		147,030		81,087		143,164
Goodwill	6	13,543,905		6,714,215		13,543,905
Intangible assets	6	2,642,715		1,227,162		3,213,519
Other assets	7	158,500		120,000		158,500
		16,492,150		8,142,464		17,059,088
Current assets
Trade and other receivables	8	2,994,331		1,149,348		2,224,741
Cash and cash equivalents	9	1,286,977		582,063		4,013,894
		4,281,308		1,731,411		6,238,635
Total assets		20,773,458		9,873,875		23,297,723
Current liabilities
Trade and other payables	10	3,265,293		1,562,112		2,750,136
Loans and borrowings	11	200,996		27,089		14,504
Contingent consideration		2,500,000		-		2,500,000
		5,966,289		1,589,201		5,264,640
Non-current liabilities
Deferred tax liability		17,858		60,717		39,288
Loans and borrowings	11	-		2,504		-
Contingent consideration		2,460,231		-		2,387,648
		2,478,089		63,221		2,426,936
Total liabilities		8,444,378		1,652,422		7,691,576
Net assets		12,329,080		8,221,453		15,606,147
Equity
Share capital	12	19,517,049		16,080,988		19,517,049
Share premium reserve		78,119,547		72,052,735		78,119,547
Shares to be issued		-		803,571		-
Merger reserve		(69,334,935)		(71,077,359)		(69,334,935)
Retained earnings		(15,972,581)		(9,638,482)		(12,695,514)
Total equity		12,329,080		8,221,453		15,606,147

 

Consolidated statement of cash flows

for the 6 months ended 30 June 2015

	Note	6 months ended 30 Jun 15		6 months ended 30 Jun 14		15 months ended 31 Dec 14
		£		£		£
		Unaudited		Unaudited		Audited
Cash flows from operating activities
Loss for the period		(3,509,131)		(4,128,946)		(9,747,050)
Adjustments for:
Depreciation of property, plant and equipment		16,957		14,333		41,252
Amortisation of intangible fixed assets	6	778,766		446,884		1,277,357
Finance income	3	(6,495)		(11,702)		(14,601)
Finance expense	3	81,444		4,573		57,355
Income tax credit		(21,430)		(21,430)		(46,431)
Loss on disposal of property, plant and equipment		27,684		-		30,243
Profit on disposal of intangibles	6	(393,957)		-		-
Share-based payment expense		232,064		144,061		438,169
(Increase)/decrease in trade and other receivables		(523,531)		264,558		39,776
Increase/(decrease) in trade and other payables		515,157		(126,329)		(22,760)
Increase in other assets		-		-		(99,402)
Net cash from operating activities		(2,802,472)		(3,413,998)		(8,046,092)
Investing activities
Acquisition of subsidiary, net of cash acquired		-		-		(3,290,311)
Proceeds from disposal of intangibles		253,941		-		-
Purchases of property, plant and equipment		(48,507)		(29,446)		(107,240)
Purchase of intangibles	6	(314,005)		(238,310)		(583,364)
Interest received	3	6,495		11,702		14,601
Net cash from investing activities		(102,076)		(256,054)		(3,966,314)
Financing activities
Proceeds of Ordinary Share issue	12	-		690,000		11,938,999
Issuance cost of shares		-		-		(130,702)
Proceeds from other loans		198,492		-		-
Payment of deferred consideration		-		-		(825,000)
Repayment of other loans		(12,000)		(19,165)		(30,000)
Interest paid	3	(8,861)		(4,573)		(10,035)
Net cash from financing activities		177,631		666,262		10,943,262
Net decrease in cash and cash equivalents		(2,726,917)		(3,003,790)		(1,069,144)
Cash and cash equivalents at beginning of period		3,994,326		3,566,285		5,063,470
Cash and cash equivalents at end of period	9	1,267,409		562,495		3,994,326

Consolidated statement of changes in equity

for the 6 months ended 30 June 2015

	Share capital	Share premium	Shares to be issued	Merger reserve	Retained earnings	Total equity
	£	£	£	£	£	£
1 October 2013	14,633,369	70,437,354	-	(71,077,359)	(3,365,204)	10,628,160
Loss for the period	-	-	-	-	(2,322,956)	(2,322,956)
Shares issued as part of the capital raising	1,147,619	1,262,381	-	-	-	2,410,000
Shares to be issued	-	-	803,571	-	-	803,571
Share-based payment  - Share options	-	-	-	-	34,563	34,563
Cost of issue of Ordinary Share capital	-	(37,000)	-	-	-	(37,000)
31 December 2013 (unaudited)	15,780,988	71,662,735	803,571	(71,077,359)	(5,653,597)	11,516,338
Loss for the period	-	-	-	-	(4,128,946)	(4,128,946)
Shares issued as part of the capital raising	300,000	390,000	-	-	-	690,000
Share-based payment  - Share options	-	-	-	-	144,061	144,061
30 June 2014 (unaudited)	16,080,988	72,052,735	803,571	(71,077,359)	(9,638,482)	8,221,453
Loss for the period	-	-	-	-	(3,295,148)	(3,295,148)
Shares issued as part of the consideration in a business combination	757,576	-	-	1,742,424	-	2,500,000
Shares issued as part of the capital raising	2,678,485	6,160,514	-	-	-	8,838,999
Settlement of shares to be issued	-	-	(803,571)	-	(21,429)	(825,000)
Cost of issue of Ordinary Share capital	-	(93,702)				(93,702)
Share-based payment  - Share options	-	-	-	-	259,545	259,545
31 December 2014	19,517,049	78,119,547	-	(69,334,935)	(12,695,514)	15,606,147
Loss for the period	-	-	-	-	(3,509,131)	(3,509,131)
Share-based payment  - Share options	-	-	-	-	232,064	232,064
30 June 2015 (unaudited)	19,517,049	78,119,547	-	(69,334,935)	(15,972,581)	12,329,080

Notes forming part of the consolidated financial statements

For the 6 months ended 30 June 2015

1. Accounting policies

General Information

Gaming Realms plc ("the Company") and its subsidiaries (together "the Group").

The Company is admitted to trading on AIM of the London Stock Exchange. It is incorporated and domiciled in the UK. The address of its registered office is One Valentine Place, London, SE18QH.

The results for the six months ended 30 June 2015 and 30 June 2014 are unaudited.

Basis of preparation

The financial information for the year ended 31 December 2014 does not constitute the full statutory accounts for that year. The Annual Report and Financial Statements for 2014 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2014 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

This interim report, which has neither been audited nor reviewed by independent auditors, was approved by the board of directors on 23 September 2015. The financial information in this interim report has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the period ended 31 December 2014 and which will form the basis of the 2015 financial statements. A number of new and amended standards have become effective for periods beginning on 1 January 2015, however none of these are expected to materially affect the Group.

The consolidated financial statements are presented in sterling.

2. Segment information

The Board is the Group's chief operating decision-maker. Management has determined the operating segments based on the information reviewed by the Board for the purposes of allocating resources and assessing performance. The Group has one reportable segment with three product lines, being social gaming, real money gaming and marketing services. Each product line represent different brands, products and services provided. The social gaming product provide freemium gaming services to the US and Europe. The real money gaming product operates the PocketFruity and SpinGenie brands in the UK. The marketing services product represents the marketing services provided to its white label brands. The marketing services segment also includes other digital marketing services provided to both gaming and non-gaming clients. 

Revenue by product:

	6M 30 Jun 15		6M 30 Jun 14		15M 31 Dec 14
	£		£		£
Social gaming	53,066		475,702		1,176,082
Real money gaming	4,180,831		805,838		2,667,596
Marketing services	3,719,616		2,918,277		7,383,528
	___________		___________		___________
	7,953,513		4,199,817		11,227,206
	___________		___________		___________

Geographical information

The Group considers that its primary geographic regions are the UK, including Channel Islands, USA and the Rest of World. No revenue is derived from real money gaming in the US. Revenues from customers outside the UK (including Channel Islands) and USA are not considered sufficiently significant to warrant separate reporting. All non-current assets are based in the UK.

	External revenue by location of customers	External revenue by location of customers	External revenue by location of customers
	6M 30 Jun 15	6M 30 Jun 14	15M 31 Dec 14
	£	£	£
UK, including Channel Islands	7,582,711	3,656,871	9,850,955
USA	40,606	357,871	878,868
Rest of the World	330,196	185,075	497,383
	_________	_________	_________
	7,953,513	4,199,817	11,227,206
	_________	_________	_________

Revenues from one customer total £1,338,882 (2013: nil). This major customer receives marketing services from the Group.

3. Finance income and expense

	30 Jun 2015		30 Jun 2014		31 Dec 2014
Finance income	£		£		£
Interest received	6,495		11,702		14,601
Total finance income	6,495		11,702		14,601
Finance expense
Bank interest expense paid	8,861		4,573		10,035
Unwinding of discount on contingent consideration	72,583		-		47,320
Total finance expense	81,444		4,573		57,355

4. Tax expense

	30 Jun 2015		30 Jun 2014		31 Dec 2014
	£		£		£
Current tax expense
Current tax credit on losses for the period	-		-		45,968
Total current tax	-		-		45,968
Deferred tax expense
Origination and reversal of temporary differences	21,430		21,430		46,431
Total deferred tax	21,430		21,430		46,431
Total tax credit	21,430		21,430		92,399

	30 Jun 2015		30 Jun 2014		31 Dec 2014
	£		£		£
Loss for the period	(3,509,131)		(4,128,946)		(9,747,050)
Income tax credit	21,430		21,430		92,399
Profit before income taxes	(3,530,561)		(4,150,376)		(9,839,449)
Loss for the period	(3,530,561)		(4,150,376)		(9,839,449)
Expected tax at effective rate of corporation tax in the UK of 20.30% (31 Dec 14: 21.75% and 30 Jun 14: 21.49%)	(716,704)		(891,916)		(2,140,080)
Expenses not deductible for tax purposes	60,817		2,364		120,098
Depreciation in excess of capital allowances	3,443		3,081		8,972
Effects of overseas taxation	99,280		-		75,736
Adjustment in respect of loss carried back	-		-		45,968
Origination and reversal of temporary differences	21,430		21,430		46,431
Tax losses carried forward	553,164		886,471		1,935,274
Total tax credit	21,430		21,430		92,399

5. Loss per share

	30 Jun 2015		30 Jun 2014		31 Dec 2014
	£		£		£
Loss after tax	(3,509,131)		(4,128,946)		(9,747,050)
	Number		Number		Number
Weighted average number of Ordinary Shares used in calculating basic loss per share	195,170,489		159,517,062		165,220,742
Weighted average number of Ordinary Shares used in calculating dilutive loss per share	195,170,489		159,517,062		165,220,742
Basic and diluted loss per share (pence)	(1.80)		(2.59)		(5.90)

6. Intangible assets

	Goodwill	Customer database	Software	Development costs	Domain names	Total
	£	£	£	£	£	£
Cost
At 1 January 2014	6,714,215	845,921	361,684	579,493	-	8,501,313
Additions	-	-	-	238,310	-	238,310
At 30 June 2014	6,714,215	845,921	361,684	817,803	-	8,739,623
Acquired through business combination	6,829,690	2,343,632	-	-	-	9,173,322
Additions	-	-	-	265,008	26,514	291,522
At 31 December 2014	13,543,905	3,189,553	361,684	1,082,811	26,514	18,204,467
Additions	-	-	-	314,005	-	314,005
Disposal*	-	-	(361,684)	-	-	(361,684)
At 30 June 2015	13,543,905	3,189,553	-	1,396,816	26,514	18,156,788
Amortisation
At 1 January 2014	-	134,153	102,285	114,924	-	351,362
Amortisation charge	-	275,585	59,779	111,250	-	446,884
At 30 June 2014	-	409,738	162,064	226,444	-	798,246
Amortisation charge	-	448,248	60,770	139,351	428	648,797
At 31 December 2014	-	857,986	222,834	365,795	428	1,447,043
Amortisation charge	-	537,981	32,807	206,364	1,614	778,766
Disposal*	-	-	(255,641)	-	-	(255,641)
At 30 June 2015	-	1,395,967	-	572,159	2,042	1,970,168
Net book value
At 31 December 2014	13,543,905	2,331,567	138,850	717,016	26,086	16,757,424
At 30 June 2014	6,714,215	436,183	199,620	591,359	-	7,941,377
At 30 June 2015	13,543,905	1,793,586	-	824,657	24,472	16,186,620

*On the 9 April 2015, Bingo Realms Limited entered into an Asset Sale and Purchase Agreement with European Domain Management Ltd, to sell all associated assets in its Bingo Godz and CastleJackpot brands which were operated by Intellectual Property & Software Limited. The total consideration for the sales was £500,000 in cash, with £200,000 payable on completion and the remainder payable over the next 17 months.

7. Other assets

	30 Jun 2015		30 Jun 2014		31 Dec 2014
	£		£		£
Other assets
	158,500		120,000		158,500

Other assets represent the rental deposits on operating leases.

8. Trade and other receivables

	30 Jun 2015		30 Jun 2014		31 Dec 2014
	£		£		£
Trade and other receivables	1,678,240		287,445		1,183,859
Allowance for doubtful debts	(9,548)		(1,401)		(9,548)
	1,668,692		286,044		1,174,311
Prepayments and accrued income	1,325,639		863,304		1,050,430
	2,994,331		1,149,348		2,224,741

All amounts shown fall due for payment within one year

9. Cash and cash equivalents

	30 Jun 2015		30 Jun 2014		31 Dec 2014
	£		£		£
Cash and cash equivalents	1,267,409		562,495		3,994,326
Restricted cash	19,568		19,568		19,568
	1,286,977		582,063		4,013,894

Restricted cash of £19,568 (30 Jun 2014 and 31 December 2014: £19,568) relates to funds held in Swiss subsidiaries which are currently undergoing liquidation. The funds are restricted and are not included in the consolidated statement of cash flows.

10. Trade and other payables

	30 Jun 2015		30 Jun 2014		31 Dec 2014
	£		£		£
Trade and other payables	2,028,020		582,416		1,277,163
Accruals	849,761		772,521		1,077,171
Player liabilities	387,512		207,175		395,802
	3,265,293		1,562,112		2,750,136

The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value.

11. Loans and borrowings

	30 Jun 2015		30 Jun 2014		31 Dec 2014
	£		£		£
Current liabilities
Loans and borrowings	200,996		27,089		14,504
Non-current liabilities
Loans and borrowings	-		2,504		-

12. Share capital

Ordinary Shares

		30 Jun 2015		30 Jun 2014		31 Dec 2014
		£		£		£
195,170,488 (30 Jun 2014: 160,809,880 and 31 Dec 14: 195,170,488) Ordinary Shares of 10 pence each		19,517,049		16,080,988		19,517,049

Movements in share capital

	Number		£
At 1 October 2013	146,333,690		14,633,369
Ordinary Shares issued for cash consideration	11,476,190		1,147,619
At 31 December 2013	157,809,880		15,780,988
Ordinary Shares issued for cash consideration	3,000,000		300,000
At 30 June 2014	160,809,880		16,080,988
Ordinary Shares issued for cash consideration	26,784,851		2,678,485
Ordinary Shares issued in the acquisition Blueburra Holdings Limited	7,575,757		757,576
At 31 December 2014 and 30 June 2015	195,170,488		19,517,049

On 11 December 2013, 11,476,190 shares were issued at £0.21 per share with costs of £37,000 associated with the share issue.

On 20 March 2014, 3,000,000 shares were issued at £0.23 per share.

On 5 September 2014, 18,148,487 shares were issued at £0.33 per share with a cost of £93,702 associated with the share issue. In addition 7,575,757 shares were issued at £0.33 per share as part of the acquisition of Blueburra Holdings Limited.

On 9 September 2014, 757,576 shares were issued at £0.33 per share.

On 5 December 2014, 6,666,667 shares were issued at £0.33 per share.

On 12 December 2014, 1,212,121 shares were issued at £0.33 per share.

13. Events after reporting date

On the 10 August 2015, the Group acquired from RealNetworks, Inc., gaming assets associated with GameHouse U.S. and Canadian Game studios including the social and mobile freemium portfolio games and publishing network, Slingo brand & patents, certain game domains, an intellectual property licence relating to the GameHouse Promotion Network and the entire issued share capital of Backstage Technologies Inc, a Canadian entity. The total consideration of USD 18 million, was satisfied by a payment of USD 10 million in cash paid upfront and USD 4 million in deferred consideration payable on the First Anniversary and USD 4 million in deferred consideration payable on the Second Anniversary. Up to 50 per cent. of each tranche of the deferred consideration can be satisfied by the issue of new Ordinary Shares in Gaming Realms plc. With the proximity of the date of the acquisition to the date of the authorisation of these interim results, a detailed assessment of the fair value of the consideration and identifiable net assets has not yet been completed.

On the 10 August 2015, the Group also raised £12,500,000 through the placing of 49,900,578 new Ordinary Shares with 47,415,000 shares at 25 pence per share and 2,485,578 shares at 26 pence per share.

 

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