Key partnerships helped secure strong recurring revenues from licensing fees
Companies: Gaming Realms PLC
Gaming Realms Plc, the AIM-listed gaming developer, has reported that it swung to profit in Q3 as significant online commercial partnerships helped the group establish strong recurring revenues from licensing fees. Gaming revenue increased to nearly £6m (+113%), whilst licensing revenue increased to £2.5m (+189%).
The group's H1 investment in its "Grizzly" platform was key to the performance as it enabled the firm to make its content available to third parties and reduce CAC (customer acquisition cost). During the period the firm launched: thexfactorgames, starwins, and Slingo Arcade.
London-based Gaming Realms said its strategy had been well executed, delivering positive EBITDA for the first time, and confirmed it believe it had lots of room for growth:
"We believe there are significant medium term opportunities to increase revenue in game content licensing across real money and social gaming markets, and will continue to invest in and develop these areas."
Patrick Southon CEO said he was pleased with the top line growth and move into profitability:
"...especially in a quarter in which we launched several new real money and social games. Our investment in our own platform is paying off through flexibility, reliability and greater player retention.
We are delighted with the extended and growing list of partnerships with high profile media companies, opening up new audiences and sources of revenue."
Gaming Realms share price jumped 11% as the market opened, before settling just 5% above its closing price.
