Gaming Realms (GMR)

Business description

Gaming Realms creates, develops and markets interactive next-generation online gambling games delivered via mobile, tablet and desktop computers. It listed on AIM via a reverse takeover (of Pursuit Dynamics) in August 2013.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2014A 11.2 (7.8) (8.4) (5.0) N/A N/A
2015A 21.2 (4.1) (5.1) (2.2) N/A N/A
2016E 40.0 0.8 (0.1) 0.0 N/A N/A
2017E 65.0 11.6 10.7 3.8 5.3 5.4

Last updated on 06/05/2016

Latest research

Building momentum

Update | Travel & Leisure | 06/05/2016

New funding to support growth plans

Update | Travel & Leisure | 04/03/2016

Refocusing to play to its strengths

Update | Travel & Leisure | 19/02/2016

A platform for growth

Outlook | Travel & Leisure | 20/10/2015

Slingo ticks all the boxes

Update | Travel & Leisure | 13/08/2015

Playing for real

Update | Travel & Leisure | 22/04/2015

Daily comment

Institutional Comment | Travel & Leisure | 24/03/2015

Marketing is paying off

Update | Travel & Leisure | 24/03/2015

Strong growth trajectory

Update | Travel & Leisure | 04/12/2014

Daily comment

Institutional Comment | Travel & Leisure | 08/09/2014

Another piece in the jigsaw

Update | Travel & Leisure | 05/09/2014

Investing to grow

Flash note | Travel & Leisure | 16/06/2014

Investment summary

Gaming Realms’ 2015 final results show a business that continues to build momentum, as revenues more than doubled to £21.2m (2014 pro forma: £9.8m). Growth is being driven by its real money and social gaming (including licensing) verticals, which were up 362% and 294%, respectively. Gaming Realms also recently announced that it has extended its licensing deal with Scientific Games to land-based gaming machines as part of its strategy of taking the Slingo brand into adjacent markets. 2015 adjusted EBITDA losses fell by 30% to £4.1m and the Q1 trading update (revenues up 100% y-o-y) supports our view that the company can break even at the EBITDA level this year.

Last updated on 06/05/2016

Industry outlook

Over 70% of GMR's players are using mobile and tablet devices, well ahead of the industry average. Digital Spy estimates that total mobile data usage is growing at 70% pa, driven by 4G proliferation, and that 25% of mobile time is spent playing games or listening to music, according to InMobi. GMR is also hoping to expand the current UK online slot market of 1.73m players into the relatively untapped 12m adult social games market.

Last updated on 03/05/2016

Key management

Patrick Southon, CEO
Mark Segal, CFO

Company address

44 Southampton Buildings
London
WC2A 1AP
United Kingdom
0845 123 3773
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