Gaming Realms' revenues jump 60% as it approaches profitability

Mobile and social game developer Gaming Realms saw sales increase 60% last year to £34m, after significant growth in real-money gaming revenues (+100%). 

Total new depositing players jumped 47% to 250k, as the Group expanded its game library to 8 proprietary games. The firm's game content and IP accounted for 44% of real money and social revenues, while IP licensing deals with Zynga and Scientific Games generated £700k in revenue.

The firm is expecting a swing to EBITDA profitability in the second half of the year, around £2m (up from a loss £1.7m), but it still expects an adj EBITDA loss for the year of £1m. Significantly lower than the £4.1m loss incurred last year. 

CEO Patrick Southon said it had been another year of progress for the firm, with "rapidly" growing revenues and reduced losses. He added that the company expected to be EBITDA positive in H2, having scaled its business plan to be profitable in 2017.

"... [we are] continuing to drive top line growth and allocating our capital towards real money gaming and content licensing, the most profitable parts of our business."  

Gaming Realms said it had started 2017 the year well, with real money gaming, social publishing and licensing revenue up around 19% against last year. 

Shares in Gamin Realms rose 5% early on Thursday.