Gaming Realms predicts 62% leap in full-year revenue figures
Peel Hunt upgrades EBITDA forecast on Slingo supplier after stellar year and continued US expansion
Gaming Realms expects to post a 62% uptick in full-year revenue to £11.2m for 2020.
The Slingo supplier said the positive financial results were driven by its content licensing business arm which grew more than 100% during 2020.
Gaming Realms onboarded 26 new partners in 2020, including the likes of DraftKings and Paddy Power Betfair.
Gaming Realms has also predicted full-year EBITDA to reach £3.1m.
In the US, the group has been granted a provisional supplier licence in Michigan, as well as being in the process of applying for a licence in Pennsylvania.
Michael Buckley, Gaming Realms chair, said: “We are delighted with last year’s performance, which illustrates both the popularity of our games and our ability to license multiple different partners.
“At the same time, we have taken a significant step forward to becoming a global platform business with multiple games, all of which is testament to our talented and motivated team.
“The combination of our excellent games portfolio, our existing distribution agreements with global partners and our strong pipeline of new partnerships, makes us optimistic about the significant opportunities ahead as we focus on our continued expansion and international growth,” he added.
Peel Hunt analyst Ivor Jones said Gaming Realms’ strong trading note had resulted in a forecast change.
Jones said: “In light of the strong trading in FY 2020 we have upgraded our forecasts for FY 2021 EBITDA from £4.5m to £5m. While some uncertainty over UK regulation remains, the most recent set of new regulations from the UK Gambling Commission, relating to game design, had no material implications for Gaming Realms’ core Slingo game.
“With accelerating revenue growth in a widening group of geographic markets and a largely fixed cost base, Gaming Realms is well-placed to continue to surprise on the upside. The next news should include an update on the early stages of revenue generation in Michigan and Italy. Ahead of that, we reiterate our buy rating and 40p target price,” he added.
The company is set to report its preliminary FY 2020 results in April.