Trading Update

RNS Number : 0852N

Gaming Realms PLC

27 January 2016

 

Gaming Realms Plc

("Gaming Realms", the "Company" or the "Group")

Trading Update

2015 Group Revenue up 116% & Real Money Gaming Revenue up 305%

Group Signs Agreements with Zynga, Endemol and Fremantle Media

Gaming Realms, the creator and publisher of mobile real money and social games, is pleased to provide an update on its trading, based on preliminary unaudited information for the year ended 31 December 2015. The Group also announces that it has signed three licensing agreements, which will see its popular and successful game format Slingo extend into new player channels and markets.

Financial highlights:

·     Total Group revenue for 2015 up 116% to £21.4m versus unaudited 12 months to 31 December 2014, in line with management's expectations

o  £9.9m for the unaudited 12 months ended 31 December 2014

o  £11.2m for audited 15 month period ended 31 December 2014

·     Real money gaming revenue for 2015 up 305% to £10.8m versus the unaudited 12 months ended 31 December 2014

·     The Group continued to make good progress in Q4 2015, with revenue up 13.5% to £7.1m compared to the previous quarter (indicating approximate annual run rate in excess of £28.0m)

·     Q4 2015 real money gaming revenue up 39%

Licensing and publishing partnerships:

The Group has made significant progress with its publishing strategy and has signed three important agreements involving its leading games format, Slingo. The agreements are:

·     A three year agreement with global content company Fremantle Media (part of the RTL group) which will see Slingo extended into new player channels under its X Factor brand, with a significant marketing campaign launching in Q3 2016, in line with the show's air date

·     An agreement with media producer Endemol to develop a new game, which will leverage the Slingo format and Endemol's Deal or No Deal brand. The game is due to launch in Q2 2016 and is expected to replicate the success of Slingo in the Group's proprietary brands; and

·     A new licensing deal with social games developer Zynga to bring a new Slingo branded slot game to the social casino market. The deal will pay Gaming Realms a royalty on net revenue over a three-year term.

The board is pleased with the recent progress in signing these agreements and expects this momentum to continue throughout the year with a healthy pipeline of opportunities.

Commenting on the update, Patrick Southon, CEO, said:

"The Group made great progress in 2015, achieving Group revenue growth of 116% and real money revenue growth of 305% following the launch of our proprietary games platform, Grizzly. We are excited by what has already been achieved in social gaming following the acquisition of RealNetwork Inc.'s mobile games assets as we look to build out our games offering and publishing capabilities. The Group is already reaping the benefits of the acquisition, evident by the signing of the agreements with Fremantle, Endemol and Zynga. These agreements will open the Group up to new player audiences and revenue streams." 

The Group expects to report its 2015 preliminary results in April 2016.

Contacts:

Gaming Realms Patrick Southon, CEO Mark Segal, FD	[phone]
Cenkos Securities (Nomad and Broker) Max Hartley (Nomad) Julian Morse (Broker)	[phone]
Yellow Jersey PR Charles Goodwin Aidan Stanley	[phone] [phone]

About Gaming Realms

Gaming Realms creates and publishes innovative real money and social games for mobile, with operations in the UK and U.S. Through its market leading mobile platform and unique IP and brands, Gaming Realms is bringing together media, entertainment and gaming assets in new game formats. The Gaming Realms management team includes accomplished entrepreneurs and growth executives from a wide range of leading gaming and media companies.

 

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