Following a strong first half of 2020 due to increased online activity, Gaming Realms has predicted at least a 55% increase in revenue to £10.7m for the whole year. The announcement boosted the company’s shares by 3% in early trading.
Performance Remains Strong in 2H2020
Real-money mobile gaming provider Gaming Realms expects to report a 55% increase in revenue to £10.7m this year. On Tuesday, the company announced its business performance and sales momentum have remained strong and in line with the results throughout the first eight months of the year.
Apart from the 55% year-over-year rise in revenue, the company predicts EBITDA of at least £2.75 million for the 12-month period to 31 December 2020. The positive trading update sent Gaming Realms share price up by 3% in early trading.
In September, Gaming Realms posted a revenue increase of 66% to £5.2 million corresponding to the first half of 2020. The uptick was due to the Covid-19 lockdown, which forced brick-and-mortar casinos and entertainment venues to close and led people to spend more time at home in front of their screens. The core licensing division of the online gambling company was another top performer with a 104% rise in revenue to £3.4 million given the increase in distribution and bigger games portfolio.
New International Distribution Partners and Games Portfolio Boost Growth
Some of the highlights in the first half were the expansion of the company’s international distribution partners and the launch of new Slingo games, which enjoyed increasing interest from consumers. Between January and June, Gaming Realms went live with five operators: Gamesys, Sky Betting & Gaming, 888 Casino in the UK, DraftKings in New Jersey, and Caliente in Mexico. The market welcomed four new games, including Slingo Centurion in partnership with Inspired Entertainment, with 40 games on its portfolio at the period end.
At the beginning of October, Gaming Realms announced it had inked a multi-year partnership deal with NetEnt. Under the agreement, the gaming content developer will be authorized to license NetEnt’s best-seller – Starburst and will combine the classic features of Starburst with the popular Slingo grid mechanic to create a new game.
The London-listed supplier is also planning to expand its network in the US and has applied for licenses in Pennsylvania and Michigan. The expectations are that it will be operational in the two states during the first half of 2021.
With the US gradually legalizing online gambling activity, Gaming Realms will seek to increase its presence and diminish its dependence on the United Kingdom. Each state has the autonomy to regulate or ban individual types of gambling and whether this activity can be performed online or only offline. Delaware, Pennsylvania, West Virginia, and Michigan have permitted online gambling recently.