REG - Gaming Realms PLC - Annual Results 2024
31/03/2025 07:15
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RNS Number : 7830C Gaming Realms PLC 31 March 2025
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (596/2014/EU) AS THE SAME HAS BEEN RETAINED IN UK
LAW AS AMENDED BY THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI
2019/310) ("UK MAR").
31 March 2025
Gaming Realms plc
(the "Company" or the "Group")
Annual Results 2024
22% increase in Revenue and 30% increase in Adjusted EBITDA(1) marks another
record year
Gaming Realms plc (AIM: GMR), the developer and licensor of mobile focused
gaming content, announces its annual results for the year ended 31 December
2024 and Q1 highlights for 2025.
Gaming Realms' strategic focus on content licensing has continued its
significant revenue growth and high margins, with traction in both existing
and emerging markets. The Company has an exciting pipeline of new partners and
game releases and remains well positioned for continued expansion and success
through 2025.
2024 Financial Highlights:
· Revenue increased by 22% to £28.5m (2023: £23.4m)
o Licensing revenue increased by 23% to £24.5m (2023: £19.9m)
o Social publishing revenue increased by 14% to £4.0m (2023: £3.5m)
· Adjusted EBITDA increased by 30% to £13.1m (2023: £10.1m)
· EBITDA of £12.3m (2023: £9.2m)
o Licensing segment generated £14.2m EBITDA (2023: £11.3m)
o Social publishing segment generated £1.2m EBITDA (2023: £0.8m)
o Head office costs were £3.2m (2023: £2.9m) and excluding share option
and related charges were £2.6m (2023: £2.4m)
· Profit before tax for the year increased by 61% to £8.3m (2023:
£5.2m)
· Year-end cash balance increased to £13.5m (2023: £7.5m), with
the Group remaining debt free
· Announced initial £6m share buyback programme, reflecting the
Board's confidence in the strategy and business model
2024 Operational Highlights:
· Released 12 new unique Slingo games to the market, enhancing our
portfolio offering
· Granted full iGaming Supplier Licenses in West Virginia and
British Columbia
· Launched content in West Virginia, the fifth U.S. state regulated
for iGaming where the Group is represented
· Launched with 44 new partners globally:
o In North America with Fanduel in Pennsylvania and Connecticut, Fanatics in
New Jersey, Michigan, Pennsylvania and West Virginia
o In Europe with Danske Spil in Denmark, Betclic in Italy and Solverde in
Portugal
· Increased unique players in content licensing business by 22%
· Launched innovative content including Slingo Press Your Luck and
Slingo Fowl Play, collaborating with high-profile television and gaming brands
· Launched content from a second third-party slot studio, ReelPlay,
to accelerate the growth of the distribution business
· Doubled the number of third-party games distributed on our
network to 14 (2023: 7)
Q1 2025 Highlights:
· A strong start to 2025, with revenue in line with management
expectations, driven by our core content licensing business showing a 22%
increase in the first two months of the year compared with the same period in
2024
· Launched with 9 new operators including BetMGM and Superbet in
Brazil, and PENN Entertainment in West Virginia
· Launched in Brazil with four partners following the market
regulating for iGaming in January 2025
· Released three new Slingo games, including Slingo Genie Gemstones
and Slingo Honey Crew
1 EBITDA is profit before interest, tax, depreciation and amortisation and is
a non-GAAP measure. The Group uses EBITDA and Adjusted EBITDA to comment on
its financial performance. Adjusted EBITDA is EBITDA excluding share option
and related charges and adjusting items, which are significant, non-recurring
items outside the scope of the Group's ordinary activities.
Summary:
The Group saw core content licensing revenues grow 28% to £23.8m (2023:
£18.6m) with North America becoming our largest market with 54% of the total
content licensing. This is a result of 59% growth in content licensing
revenues in North America to £12.9m (2023: £8.1m).
Outlook:
Looking forward, the Group is well placed to deliver further growth in new and
existing markets. We have launched our content in the newly regulated iGaming
market in Brazil and expect to be launching our games with the lottery in
British Columbia in Canada, as well as in South Africa in the coming months.
To date, in 2025, we have already launched with 9 partners and three new
Slingo games. The Board is confident in the Group's strategy and expectations
for the rest of the current year.
Commenting on the Group's performance, Mark Segal, CEO, said:
"I am thrilled to share that 2024 has been another record-breaking year for
Gaming Realms, with our performance including a 22% increase in revenue and a
30% lift in Adjusted EBITDA. This is strong evidence of the effectiveness of
our content licensing strategy, as well as the rising popularity of our Slingo
portfolio in international iGaming markets.
"Building on the momentum, we have made an excellent start to 2025 with our
recent launch in Brazil, a newly regulated iGaming market, which expands our
global presence to 21 markets. We have also launched with 9 new partners and
released three new Slingo games, further enhancing our exciting and popular
portfolio of content. As we move through 2025, we look forward to sharing
updates on our continued expansion into new markets, the growth of our
exciting game portfolio and upcoming partner launches."
An analyst briefing will be held virtually at 09:30am today. To attend, please
email: gamingrealms@yellowjerseypr.com
(mailto:gamingrealms@yellowjerseypr.com) .
The Company also notes that it will be hosting an online presentation to
retail investors on Friday, 04 April at 11:00am. Those wishing to join the
presentation are requested to sign up to Investor Meet Company for free and
add to meet Gaming Realms via:
https://www.investormeetcompany.com/gaming-realms-plc/register-investor
(https://www.investormeetcompany.com/gaming-realms-plc/register-investor)
Enquiries
Gaming Realms plc 0845 123 3773
Michael Buckley, Executive Chairman
Mark Segal, CEO
Geoff Green, CFO
Peel Hunt LLP - NOMAD and joint broker 020 7418 8900
George Sellar
Lalit Bose
Investec - Joint broker 020 7597 4000
Ben Farrow
Lydia Zychowska
Yellow Jersey PR
07747 788 221
Charles Goodwin
Annabelle Wills
Bessie Elliot
For the purposes of UK MAR, the person responsible for arranging for the
release of this information on behalf of Gaming Realms is Geoff Green.
About Gaming Realms
Gaming Realms creates and licenses innovative games for mobile, with
operations in the UK, U.S., Canada and Malta. Through its unique IP and
brands, Gaming Realms is bringing together media, entertainment and gaming
assets in new game formats. As the creator of a variety of Slingo(TM), bingo,
slots and other games, we use our proprietary data platform to build and
engage global audiences. The Gaming Realms management team includes
accomplished entrepreneurs and experienced executives from a wide range of
leading gaming and media companies.
Executive Chairman's Statement
I am pleased to present the Chairman's Statement for Gaming Realms plc for the
year ended 31 December 2024. The Company had another record year, continuing
to build on its strong financial and operational performance, expanding into
new regulated markets, strengthening partnerships, and enhancing its
proprietary gaming portfolio.
Financial Performance & Highlights
The Company delivered another year of financial growth, reflecting the success
of our content licensing strategy and operational scalability. Revenue
increased by 22% to £28.5m (2023: £23.4m), with licensing revenue growing
23% to £24.5m, as a result of launching with new partners in the year as well
as product innovation and more initiatives with our existing partners.
Adjusted EBITDA increased by an impressive 30% to £13.1m, with an improved
margin of 46% (2023: 43%), highlighting operational efficiencies and cost
management in the business. During 2024, our RGS platform handled in excess of
£6bn of gaming transactions.
Profit before tax rose by 61% to £8.3m, which highlights the successful
execution of our strategy in a competitive industry. Our year-end cash balance
increased to £13.5m, up from £7.5m in 2023. The Group is debt-free, and
this combined with cash resources will allow us to take advantage of growth
opportunities as they arise.
The Company today announces an initial £6m share buyback programme,
reflecting the Company's strong balance sheet, ability to generate increasing
quantities of free cashflow, and the Board's confidence in the outlook. We
will use other surplus cash for investment in product development to generate
increased long-term growth, and may explore acquisitions if suitable
opportunities arise.
The Company's ability to generate sustained revenue growth and profitability
reinforces its position as a leading international gaming content licensor.
Strategic Achievements
Gaming Realms made significant strides in 2024, expanding into new
territories, launching new games, and forming key partnerships with major
operators.
We have gone live in West Virginia, our fifth iGaming market in the USA, as we
consolidate our position as a leading supplier in that market. The North
American market remains a key driver of growth, with revenue from the region
increasing 59% to £12.9m, now accounting for 54% of total content licensing
revenue. The Company anticipates further opportunities if more U.S. states
begin to regulate online casinos, and we remain well placed to enter these new
iGaming markets.
We have also spent the year consolidating relationships with our partners. We
have launched 12 unique Slingo games, as well as a new portfolio of bespoke
games, and have grown our distribution by 44 new partners internationally. We
secured full gaming licenses in both West Virginia, and British Columbia
(Canada) where we are preparing to launch our content in the near future. On
top of this, as a result of our leading distribution, we are now partnering
with two innovative studios to distribute their content to our partners.
Gaming Realms has made substantial progress over the last five years. Since
2019, content licensing revenue has grown at a compound annual growth rate
(CAGR) of 40%, increasing from £3.1m in 2019 to £23.8m in 2024.
Our proven business model, strong balance sheet, and expanding market presence
provide a solid foundation for continued success.
Outlook for 2025 - Long-Term Growth and Market Expansion
Looking ahead, Gaming Realms is well-positioned for continued growth and
innovation. Our strategic focus for 2025 and beyond will include:
· Further international expansion, with new market entries planned
into Brazil, South Africa, British Columbia (Canada) and Greece.
· Continued growth in our existing markets and with our existing
partners, to maximise content distribution.
· Development of new game formats, leveraging our Slingo IP.
· Continuing investment in new product verticals, technology and
platform scalability to support growth.
· Expanding distribution of third-party studios content.
Acknowledgements
On behalf of the Board, I would like to extend thanks to our management and
employees, whose commitment, creativity, and hard work have been instrumental
in our achievements. I would also like to thank our shareholders for their
continued trust and support. As we move forward, we do so with confidence,
guided by a clear strategy and a commitment to excellence. I am optimistic
about the future of Gaming Realms plc and look forward to sharing our
continued progress in the years to come.
Michael Buckley
Executive Chairman
Chief Executive's Review
Introduction
2024 has been another year of strong growth and strategic progress for Gaming
Realms plc. We have continued to execute our core licensing strategy, expand
into new regulated markets and enhance our proprietary gaming portfolio, which
resulted in record revenue and profitability.
Our ability to adapt and innovate in an evolving iGaming landscape has enabled
us to scale effectively while maintaining operational efficiency and financial
discipline. We have strengthened our global partnerships, improved our
technology infrastructure, and expanded our distribution network, positioning
Gaming Realms for further growth in 2025 and beyond.
Gaming Realms has delivered another year of strong financial results, driven
by the expansion of our licensing business and growth in our core markets.
Revenue increased by 22% to £28.5m (2023: £23.4m), primarily fuelled by the
continued growth of our content licensing business. This has resulted in
licensing revenues rising by 23% to £24.5m (2023: £19.9m), reflecting
increased demand for our gaming content across multiple markets.
Profit before tax surged by 61% to £8.3m (2023: £5.2m), driven by
operational efficiencies and revenue growth. Adjusted EBITDA increased by 30%
to £13.1m, with an improved Adjusted EBITDA margin of 46% (2023: 43%).
The Company is debt-free, and ended the year with a cash balance of £13.5m
(2023: £7.5m), reinforcing our financial stability.
This performance highlights the scalability of our licensing business model,
which continues to deliver strong cash flow and profitability.
Key Strategic Achievements in 2024
This year, we made significant strides in expanding our international
footprint, launching new content, and strengthening partnerships which have
driven our growth.
New Market Expansions
· Secured full iGaming supplier licenses in West Virginia (USA) and
British Columbia (Canada), increasing our presence in North America.
· Prepared for further market expansion into South Africa, Greece, and
Brazil, opening new revenue opportunities.
Content Innovation & Growth
· Released 12 new proprietary games, including Slingo Press Your Luck
and Slingo Fowl Play, further enriching our gaming portfolio.
· Partnered with ReelPlay to expand third-party content
distribution, doubling the number of distributed third-party games from 7 to
14.
Stronger Operator Partnerships
· Expanded our global distribution network, launching with 44 new
partners, including FanDuel, Betclic, and Danske Spil.
· Increased unique player engagement by 22%, reflecting strong
demand for our gaming content.
Our strategic focus remains on delivering high-quality, engaging content that
resonates with players across multiple regulated markets.
Technology and Platform Enhancements
Our Remote Gaming Server (RGS) platform remains central to our growth,
enabling us to scale efficiently and distribute content globally. In 2024, we
invested in:
· Enhancing platform scalability to support new market launches and
increased game distribution.
· Data-driven optimization, improving game engagement and
performance.
· Strengthening security and compliance measures, ensuring
adherence to strict regulatory requirements.
· Free rounds which will be launched in 2025 and enable more
marketing of the games.
These investments will support our long-term strategy and ensure we continue
to deliver high-quality gaming experiences.
Responsible Gaming & Compliance
As a trusted gaming content provider, we remain committed to responsible
gaming practices and regulatory compliance. In 2024, we:
· Enhanced responsible gaming tools, enabling operators to
configure stake limits and features within our games.
· Ensured compliance with stringent regulatory standards across the
UK, USA, and Sweden. This includes preparing our platform and games for the
recommendations in the UK white paper, including staking limits.
· Continued engagement with regulators and industry stakeholders to
maintain best practices in player protection and data security.
We recognise the importance of ensuring a safe and secure gaming environment
and will continue to uphold the highest industry standards.
Outlook for 2025
As we look ahead, Gaming Realms is well-positioned for further growth, with a
clear strategy and strong foundation. Our focus for 2025 and beyond will be
on:
· Entering new regulated markets to drive further international
expansion.
· Enhancing our Slingo and slot-based game portfolio to deepen
player engagement.
· Expanding our operator partnerships to increase content
distribution.
· Investing in platform technology and data analytics to support
scalable growth.
With a strong balance sheet, a high-margin business model, and a robust
pipeline of new content, we are confident in our ability to deliver sustained
success.
Mark Segal
Chief Executive Officer
Financial Review
Gaming Realms delivered another strong financial performance in 2024,
achieving record revenue and EBITDA earnings. The operational leverage of the
business model was evident once again, driving increased earnings margins.
The Company's core strategy remains focused on scaling its licensing business
by expanding into new regulated jurisdictions, deepening penetration in
existing markets through key partnerships, and enhancing its unique Slingo
games portfolio.
The business continued to demonstrate strong cash generation, with the cash
balance increasing by £6.1m during the year to £13.5m (2023: £7.5m).
EBITDA-to-cash conversion improved to 49.2% (2023: 49.1%), maintaining a
robust level.
To support future growth, the Group increased investment in its games content
portfolio, RGS platform and distribution reach. With more markets known or
expected to regulate iGaming, these investments position the Group well for
continued expansion and long-term success.
Performance
Group revenue increased by 22% to £28.5m (2023: £23.4m), driven primarily by
growth in the licensing segment, particularly in core content licensing.
EBITDA rose 33% to £12.3m (2023: £9.2m), while Adjusted EBITDA increased 30%
to £13.1m (2023: £10.1m). The business's operational leverage was evident,
with the Adjusted EBITDA margin improving to 46% (2023: 43%).
Adjusted EBITDA is EBITDA excluding share option and related charges and
adjusting items. A reconciliation between EBITDA and Adjusted EBITDA is
presented below. Management considers Adjusted EBITDA the most appropriate
measure to comment on the Group's underlying financial performance.
2024 2023
£ £
EBITDA 12,318,504 9,235,802
Share option and related charges 767,663 632,304
Adjusting items - 193,859
Adjusted EBITDA 13,086,167 10,061,965
Adjusting items of £0.2m in the prior year related to a management
restructure.
The £3.1m increase in EBITDA generated in 2024 has seen the Group record
another record profit before tax of £8.3m (2023: £5.2m), an increase of
£3.2m.
Operating expenses, primarily revenue-related costs such as license fees,
hosting costs and platform provider fees, rose by 23% to £5.9m (2023:
£4.8m), aligning with the 23% increase in licensing revenue.
Administrative expenses increased by only 14% to £9.3m (2023: £8.2m), driven
by higher staff costs to support growth, along with other business expansion
expenses. The slower growth rate compared to the Company's revenue growth has
delivered operational leverage which has resulted in profit margins expanding.
Share option and related charges were £0.8m in 2024 (2023: £0.6m).
The table below presents revenue, Adjusted EBITDA, EBITDA and profit before
tax by segment, discussed further below.
Licensing Social publishing Head Office Total
2024 £ £ £ £
Revenue 24,472,679 3,993,075 - 28,465,754
Other income - 205,903 - 205,903
Marketing expense (60,960) (207,900) (98,987) (367,847)
Operating expense (4,350,861) (1,572,901) - (5,923,762)
Administrative expense (5,610,847) (1,172,704) (2,510,330) (9,293,881)
Adjusted EBITDA 14,450,011 1,245,473 (2,609,317) 13,086,167
Share option and related charges (220,724) 1,387 (548,326) (767,663)
Adjusting items - - - -
EBITDA 14,229,287 1,246,860 (3,157,643) 12,318,504
Amortisation of intangible assets (3,105,087) (903,939) - (4,009,026)
Depreciation of property, plant and equipment (59,318) (87,969) (174,568) (321,855)
Finance expense (27,365) (20,208) (43,702) (91,275)
Finance income 360,164 1,546 82,252 443,962
Profit before tax 11,397,681 236,290 (3,293,661) 8,340,310
Licensing Social Head Office Total
publishing
2023 £ £ £ £
Revenue 19,917,366 3,504,157 - 23,421,523
Other income - 139,562 - 139,562
Marketing expense (94,533) (338,030) (96,110) (528,673)
Operating expense (3,442,127) (1,359,340) - (4,801,467)
Administrative expense (4,763,369) (1,141,114) (2,264,497) (8,168,980)
Adjusted EBITDA 11,617,337 805,235 (2,360,607) 10,061,965
Share option and related charges (103,425) (9,927) (518,952) (632,304)
Adjusting items (193,859) - - (193,859)
EBITDA 11,320,053 795,308 (2,879,559) 9,235,802
Amortisation of intangible assets (2,488,290) (930,857) (444,661) (3,863,808)
Depreciation of property, plant and equipment (70,537) (70,580) (135,142) (276,259)
Finance expense (17,279) (17,688) (8,956) (43,923)
Finance income 96,280 2,820 16,425 115,525
Profit before tax 8,840,227 (220,997) (3,451,893) 5,167,337
Licensing
Total licensing revenue grew by 23% to £24.5m (2023: £19.9m), which can be
broken down as follows:
· Content licensing revenue, which increased 28% to £23.8m (2023:
£18.6m); and
· Brand licensing revenue, which declined 49% to £0.7m (2023:
£1.3m).
The segment delivered £14.5m Adjusted EBITDA in 2024 (2023: £11.6m).
Amortisation increased to £3.1m (2023: £2.5m), reflecting continued
investment in content and platform development. Capitalised development spend
rose 17% to £4.4m (2023: £3.8m), supporting the expansion of the content
portfolio and RGS platform. The increase in both the EBITDA generated and
amortisation charge resulted in the segment delivering profit before tax of
£11.4m (2023: £8.8m).
Content licensing
Content licensing remains the Group's core growth driver, with a strategy
focused on:
· Expanding into new regulated markets;
· Enhancing the Slingo games portfolio; and
· Strengthening relationships with partners to drive engagement and
growth in existing markets.
West Virginia, where we launched our content in August, was the only notable
new market entry in 2024. Despite this, content licensing revenue increased
28% to £23.8m (2023: £18.6m). This growth has been achieved by; launching
with 44 new partners globally, delivering a consistent roadmap of
premium-quality games, and greater penetration with our existing partners.
At the start of 2025, a further 9 partners have already gone live.
During the year, the Group secured full iGaming supplier licenses in West
Virginia, USA and British Columbia, Canada. Our content launched in West
Virginia in the second half of 2024, and we expect to go live in British
Columbia shortly. With additional market entries planned including in South
Africa, Greece and Alberta, Canada, the Group is well positioned for further
expansion in 2025.
The high-margin nature of content licensing supports strong operational
leverage. This continues to be demonstrated through the 21% increase in
segmental expenses (excluding share option and related charges and adjusting
items) to £10.0m (2023: £8.3m), while revenue grew 28%.
The Group released 12 new Slingo games in 2024, including Slingo Press Your
Luck and Slingo Fowl Play, along with a series of bespoke Slingo branded games
for our partners. Slingo continues to prove highly popular with our partners
and players. Slingo's unique genre of game continues to be highly popular with
players and drives engagement with our partners.
We continue to partner with leading brands that will complement the Slingo
format. During 2024 we launched exciting Slingo game collaborations with
partners such as Konami, PlayAGS and Inspired Entertainment. Further
partnerships are secured for 2025, including Fishing Bob and Cash Eruption.
North America remains a key market, with content licensing revenue from the
region growing to £12.9m, a 59% increase from £8.1m in 2023. The region
now represents 54% of total content licensing revenue (2023: 43%). As more
U.S. states regulate iGaming, the Group expects continued growth in this
region.
Brand licensing
Brand licensing revenue declined 49% to £0.7m (2023: £1.3m), reflecting the
impact of two notable deals completed in 2023, including the Entain
partnership for Slingo Bingo, which launched in May 2023.
The Slingo brand remains well-recognised, providing opportunities to expand
into adjacent markets, such as physical and digital lottery scratch games.
Social publishing
The social publishing segment delivered a strong performance, with revenues
rising 14% to £4.0m (2023: £3.5m).
Marketing investment in the segment was £0.2m (2023: £0.3m), aimed at
increasing player engagement, activity and revenues.
Operational costs increased by 16% to £1.6m (2023: £1.4m), mainly due to
revenue-linked costs including app-store fees and third-party content
royalties.
The segment continues to have a stable underlying cost base, with
administrative expenses of £1.2m (2023: £1.1m).
As a result, Adjusted EBITDA for the segment grew 55% to £1.2m for the year,
up from £0.8m in 2023.
The amortisation charge for the segment was £0.9m, a 3% reduction on the
prior year (2023: £0.9m).
Cashflow and Balance Sheet
The Group's cash balance increased by £6.1m in 2024, reaching £13.5m as of
31 December 2024 (2023: £7.5m), while remaining debt-free.
The Group capitalised £5.4m (2023: £4.6m) into intangible assets as
development costs during the year. This £0.8m increase reflects further
investment in both the licensing and social publishing segments, supporting
the expansion of the Group's unique game portfolio and enhancements to its
proprietary RGS platform for greater scale and functionality.
The Group has a strong cash position and is cash generative, so generated
interest income of £0.4m (2023: £0.1m) of bank interest income in the year.
Excluding the £5.4m in capitalised development costs, the £11.6m cash inflow
from operating activities (2023: £9.3m) was the primary driver of the cash
movement. A reconciliation between profit for the year and cash from
operating activities is provided below.
2024 2023
£ £
Cash flows from operating activities
Profit for the financial year 8,841,126 5,925,003
Adjustments for:
Depreciation of property, plant and equipment 321,855 276,259
Loss on disposal of property, plant and equipment 3,067 1,571
Amortisation of intangible fixed assets 4,009,026 3,863,808
Other income (205,903) (139,562)
Other income received during the year 146,881 185,184
Finance income (443,962) (115,525)
Finance expense 91,275 43,923
Tax credit (500,816) (757,666)
Exchange differences (918) (105,268)
Equity settled share based payment expense 688,824 419,961
(Increase) / decrease in trade and other receivables (963,811) 368,986
Increase in trade and other payables 381,690 244,710
Decrease in other assets 139,531 -
Net cash flows from operating activities before taxation 12,507,865 10,211,384
Net tax paid in the year (892,088) (935,660)
Net cash flows from operating activities 11,615,777 9,275,724
Net assets at the year-end were £34.0m (2023: £24.4m).
Going concern
In adopting the going concern basis of preparation in the financial
statements, the Directors have performed both qualitative and quantitative
assessments of the associated risks facing the business and its ability to
meet its short and medium-term forecasts. The forecasts were subject to stress
testing to analyse the reduction in forecast cash flows required to bring
about insolvency of the Company unless capital was raised. In such cases it is
anticipated that mitigation actions, such as reduction in overheads could be
implemented to stall such an outcome.
The Directors confirm their view that they have carried out a robust
assessment of the emerging and principal risks facing the business. As a
result of the assessment performed, the Directors consider that the Group has
adequate resources to continue its normal course of operations for the
foreseeable future.
Dividend
During the year, Gaming Realms did not pay an interim or final dividend. The
Board of Directors are not proposing a final dividend for the current year as
we continue to execute our strategy, invest in the growth of the business and
return surplus capital to shareholders via a buyback.
During the year the Company completed a share capital reduction, which
included the cancellation of the share premium account, in order to create
positive distributable reserves. This enables the Company, as it wishes, to
pay shareholders dividends or to be used for other valid corporate purposes,
such as the purchase of its own shares. In this regard, the Company today
announces that it is launching a £6m share buyback programme.
Corporation and deferred taxation
The current year tax credit of £0.5m (2023: £0.8m) largely relates to the
recognition of an additional £0.8m deferred tax asset (2023: £1.6m) and
£0.2m corporation tax charge (2023: £0.7m).
Geoff Green
Chief Financial Officer
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2024
2024 2023
£ £
Revenue 28,465,754 23,421,523
Other income 205,903 139,562
Marketing expenses (367,847) (528,673)
Operating expenses (5,923,762) (4,801,467)
Administrative expenses (9,293,881) (8,168,980)
Share option and related charges (767,663) (632,304)
EBITDA before adjusting items 12,318,504 9,429,661
Adjusting items - (193,859)
EBITDA 12,318,504 9,235,802
Amortisation of intangible assets (4,009,026) (3,863,808)
Depreciation of property, plant and equipment (321,855) (276,259)
Finance expense (91,275) (43,923)
Finance income 443,962 115,525
Profit before tax 8,340,310 5,167,337
Tax credit 500,816 757,666
Profit for the financial year 8,841,126 5,925,003
Other comprehensive income
Items that will or may be reclassified to profit or loss:
Exchange loss arising on translation of foreign operations (122,391) (105,004)
Total other comprehensive loss (122,391) (105,004)
Total comprehensive income 8,718,735 5,819,999
Profit attributable to:
Owners of the parent 8,841,126 5,925,003
8,841,126 5,925,003
Total comprehensive income attributable to:
Owners of the parent 8,718,735 5,819,999
8,718,735 5,819,999
Earnings per share Pence Pence
Basic 3.00 2.02
Diluted 2.87 1.96
Consolidated Statement of Financial Position
As at 31 December 2024
31 December 31 December
2024
2023
£ £
Non-current assets
Intangible assets 14,768,578 13,272,711
Property, plant and equipment 1,317,019 367,092
Deferred tax asset 2,654,415 1,891,000
Other assets - 139,531
18,740,012 15,670,334
Current assets
Trade and other receivables 6,768,580 5,060,528
Cash and cash equivalents 13,512,235 7,455,316
20,280,815 12,515,844
Total assets 39,020,827 28,186,178
Current liabilities
Trade and other payables 3,855,861 3,383,248
Lease liabilities 219,131 52,135
4,074,992 3,435,383
Non-current liabilities
Deferred tax liability 240,338 219,921
Lease liabilities 749,193 133,445
989,531 353,366
Total liabilities 5,064,523 3,788,749
Net assets 33,956,304 24,397,429
Equity
Share capital 294,826 29,366,782
Share premium - 87,732,888
Merger reserve (68,393,657) (67,673,657)
Foreign exchange reserve 1,322,306 1,444,697
Retained earnings 100,732,829 (26,473,281)
Total equity 33,956,304 24,397,429
Consolidated Statement of Cash Flows
For the year ended 31 December 2024
2024 2023
£ £
Cash flows from operating activities
Profit for the financial year 8,841,126 5,925,003
Adjustments for:
Depreciation of property, plant and equipment 321,855 276,259
Loss on disposal of property, plant and equipment 3,067 1,571
Amortisation of intangible fixed assets 4,009,026 3,863,808
Other income (205,903) (139,562)
Other income received during the year 146,881 185,184
Finance income (443,962) (115,525)
Finance expense 91,275 43,923
Tax credit (500,816) (757,666)
Exchange differences (918) (105,268)
Equity settled share based payment expense 688,824 419,961
(Increase)/ decrease in trade and other receivables (963,811) 368,986
Increase in trade and other payables 381,690 244,710
Decrease in other assets 139,531 -
Net cash flows from operating activities before taxation 12,507,865 10,211,384
Net tax paid in the year (892,088) (935,660)
Net cash flows from operating activities 11,615,777 9,275,724
Investing activities
Acquisition of property, plant and equipment (205,413) (89,715)
Acquisition of intangible assets (163,378) (157,751)
Capitalised development costs (5,448,619) (4,633,403)
Interest received 418,095 85,679
Net cash used in investing activities (5,399,315) (4,795,190)
Financing activities
Principal paid on lease liability (249,049) (236,659)
Issue of share capital on exercise of options 151,316 245,220
Interest paid (44,457) (28,538)
Net cash used in financing activities (142,190) (19,977)
Net increase in cash and cash equivalents 6,074,272 4,460,557
Cash and cash equivalents at beginning of year 7,455,316 2,922,775
Exchange (loss) / gain on cash and cash equivalents (17,353) 71,984
Cash and cash equivalents at end of year 13,512,235 7,455,316
Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
Share capital Share premium Merger reserve Foreign Exchange Reserve Retained earnings Total equity
£ £ £ £ £ £
1 January 2023 29,200,676 87,653,774 (67,673,657) 1,549,701 (32,818,245) 17,912,249
Profit for the year - - - - 5,925,003 5,925,003
Other comprehensive income - - - (105,004) - (105,004)
Total comprehensive income for the year - - - (105,004) 5,925,003 5,819,999
Contributions by and distributions to owners
Share-based payment on share options - - - - 419,961 419,961
Exercise of options 166,106 79,114 - - - 245,220
31 December 2023 29,366,782 87,732,888 (67,673,657) 1,444,697 (26,473,281) 24,397,429
1 January 2024 29,366,782 87,732,888 (67,673,657) 1,444,697 (26,473,281) 24,397,429
Profit for the year - - - - 8,841,126 8,841,126
Other comprehensive income - - - (122,391) - (122,391)
Total comprehensive income for the year - - - (122,391) 8,841,126 8,718,735
Contributions by and distributions to owners
Share-based payment on share options - - - - 688,824 688,824
Exercise of options 115,861 35,455 - - - 151,316
Capital reduction (29,187,817) (87,768,343) (720,000) - 117,676,160 -
31 December 2024 294,826 - (68,393,657) 1,322,306 100,732,829 33,956,304
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
1. Accounting policies
General information
Gaming Realms Plc (the "Company") and its subsidiaries (together the "Group").
The Company is admitted to trading on the Alternative Investment Market (AIM)
of the London Stock Exchange. It is incorporated and domiciled in the UK. The
address of its registered office is Two Valentine Place, London, SE1 8QH.
The consolidated financial statements are presented in British Pounds
Sterling.
Basis of preparation
The Group financial statements have been prepared in accordance with UK
adopted international accounting standards in conformity with the requirements
of the Companies Act 2006 and on a basis consistent with those policies set
out in our audited financial statements for the year ended 31 December 2024.
The financial information set out in this document does not constitute the
Group's statutory accounts for the year ended 31 December 2024 or 31 December
2023.
Statutory accounts for the year ended 31 December 2023 have been filed with
the Registrar of Companies and those for the year ended 31 December 2024 will
be delivered to the Registrar in due course; both have been reported on by
independent auditors. The independent auditor's report for the year ended 31
December 2024 is unmodified.
The independent auditor's reports on the Annual Report and Accounts for the
year ended 31 December 2024 and 31 December 2023 were unqualified and did not
contain a statement under 498(2) or 498(3) of the Companies Act 2006.
Going concern
The Group meets its day-to-day working capital requirements from the cash
flows generated by its trading activities and its available cash resources.
The Group prepares cash flow forecasts and re-forecasts at least bi-annually
as part of the business planning process. The Directors have reviewed
forecast cash flows for the period to December 2027 and consider that the
Group will have sufficient cash resources available to meet its liabilities as
they fall due for at least the forthcoming 12 months from the date of the
approval of the financial statements.
These cash flow forecasts have been subject to short- and medium-term stress
testing, scenario modelling and sensitivity analysis through to June 2026,
which the Directors consider sufficiently robust. Scenarios considered
include but are not limited to; failure to expand into planned new regulated
jurisdictions during the forecast period and a significant reduction in
trading cash flows compared to Group forecasts. The Directors note that in
an extreme scenario, the Group also has the option to rationalise its cost
base including cuts to discretionary capital, marketing and overhead
expenditure. The Directors consider that the required level of change to the
Group's forecast cash flows to give a rise to a material risk over going
concern are sufficiently remote.
Accordingly, these financial statements have been prepared on the basis of
accounting principles applicable to a going concern, which assumes that the
Group and the Company will realise its assets and discharge its liabilities in
the normal course of business. Management has carried out an assessment of
the going concern assumption and has concluded that the Group and the Company
will generate sufficient cash and cash equivalents to continue operating for
the next 12 months.
Adoption of new and revised standards
The following amendments are effective for the year beginning 1 January 2024:
· IFRS 16 Leases (Amendment - Liability in a Sale and Leaseback);
· IAS 1 Presentation of Financial Statements (Amendment -
Classification of Liabilities as Current or Non-current);
· IAS 1 Presentation of Financial Statements (Amendment -
Non-current Liabilities with Covenants); and
· IAS 7 Statement of Cash Flow & IFRS 7 Financial Instruments:
Disclosures (Amendment - Supplier Finance Arrangements).
These amendments did not have a material impact on the Group.
There are a number of standards, amendments to standards, and interpretations
which have been issued by the IASB that are effective in future accounting
periods that the Group has decided not to adopt early.
The following amendment is effective for the period beginning 1 January 2025:
· IAS 21 The Effects of Changes in Foreign Exchange rates
(Amendment- Lack of exchangeability)
The following amendments are effective for the period beginning 1 January
2026:
· IFRS 9 Financial Instruments & IFRS 7 Financial Instruments:
Disclosures (Amendment - Classification and Measurement of Financial
Instruments)
· IFRS 9 Financial Instruments & IFRS 7 Financial Instruments:
Disclosures (Amendment - Contracts referencing Nature- dependant Electricity)
The Group is currently assessing the impact of these new accounting standards
and amendments. The Group does not expect any of the standards or amendments
issued by the IASB, but not yet effective, to have a material impact on the
Group.
2. ADJUSTED EBITDA
EBITDA is profit before interest, tax, depreciation and amortisation and is a
non-GAAP measure. Adjusted EBITDA is EBITDA before adjusting items, which
are items that Management considers to be significant, non-recurring and
outside the scope of the Group's ordinary activities that may distort an
understanding of financial performance or impair comparability.
Adjusted EBITDA is stated before adjusting items as follows:
2024 2023
£ £
Other income (322,500) -
Legal expenses 322,500 -
Restructuring costs - 193,859
Adjusting items - 193,859
The adjusted other income and legal expenses in the current year relate to an
ongoing legal case. The other income represents costs reimbursed and expected
to be reimbursed in relation to the matter. Restructuring costs in the prior
year of £0.2m relate to a management restructure.
3. Segment information
The Board is the Group's chief operating decision-maker. Management has
determined the operating segments based on the information reviewed by the
Board for the purposes of allocating resources and assessing performance.
The Group has 2 reportable operating segments:
· Licensing - brand and content licensing to partners in Europe and
North America
· Social Publishing - providing freemium games to the US
Licensing Social publishing Head Office Total
2024 £ £ £ £
Revenue 24,472,679 3,993,075 - 28,465,754
Other income - 205,903 - 205,903
Marketing expense (60,960) (207,900) (98,987) (367,847)
Operating expense (4,350,861) (1,572,901) - (5,923,762)
Administrative expense (5,610,847) (1,172,704) (2,510,330) (9,293,881)
Share option and related charges (220,724) 1,387 (548,326) (767,663)
EBITDA before adjusting items 14,229,287 1,246,860 (3,157,643) 12,318,504
Adjusting items - - - -
EBITDA 14,229,287 1,246,860 (3,157,643) 12,318,504
Amortisation of intangible assets (3,105,087) (903,939) - (4,009,026)
Depreciation of property, plant and equipment (59,318) (87,969) (174,568) (321,855)
Finance expense (27,365) (20,208) (43,702) (91,275)
Finance income 360,164 1,546 82,252 443,962
Profit before tax 11,397,681 236,290 (3,293,661) 8,340,310
Licensing Social Head Office Total
publishing
2023 £ £ £ £
Revenue 19,917,366 3,504,157 - 23,421,523
Other income - 139,562 - 139,562
Marketing expense (94,533) (338,030) (96,110) (528,673)
Operating expense (3,442,127) (1,359,340) - (4,801,467)
Administrative expense (4,763,369) (1,141,114) (2,264,497) (8,168,980)
Share option and related charges (103,425) (9,927) (518,952) (632,304)
EBITDA before adjusting items 11,513,912 795,308 (2,879,559) 9,429,661
Adjusting items (193,859) - - (193,859)
EBITDA 11,320,053 795,308 (2,879,559) 9,235,802
Amortisation of intangible assets (2,488,290) (930,857) (444,661) (3,863,808)
Depreciation of property, plant and equipment (70,537) (70,580) (135,142) (276,259)
Finance expense (17,279) (17,688) (8,956) (43,923)
Finance income 96,280 2,820 16,425 115,525
Profit before tax 8,840,227 (220,997) (3,451,893) 5,167,337
4. Taxation
2024 2023
£ £
Current tax
Current tax charge (252,821) (745,653)
Adjustment for current tax of prior periods 24,602 43,160
Total current tax (228,219) (702,493)
Deferred tax
Movement on deferred tax asset 763,415 1,603,593
Overseas temporary differences (34,380) (143,434)
Total deferred tax credit 729,035 1,460,159
Total tax credit 500,816 757,666
The reasons for the difference between the actual tax credit for the period
and the standard rate of corporation tax in the UK applied to profits for the
year are as follows:
2024 2023
£ £
Profit before tax for the year 8,340,310 5,167,337
Expected tax at effective rate of corporation tax in the UK of 25% (2023: 2,085,078 1,215,358
23.52%)
Expenses not deductible for tax purposes 207,594 47,717
Income not chargeable for tax purposes (51,476) (32,825)
Share scheme deductions under Part 12 CTA 09 (63,173) (62,044)
Effects of overseas taxation 86,289 292,759
Adjustment for tax in respect of prior periods (24,602) (43,160)
Research and development tax credit (118,250) (159,701)
Restriction of use of tax losses 145,263 -
Movement in deferred tax not previously recognised (1,140,859) (590,553)
Difference between current and deferred tax rates - (30,116)
Recognition of deferred tax asset on losses previously unrecognised (1,626,680) (1,395,101)
(500,816) (757,666)
The Group has a net corporation tax receivable at the balance sheet date of
£623,782 (2023: creditor of £34,670) being the £228,219 current tax charge
for the year, less £892,088 payments made during the year (including
settlement of the brought forward payable) and £5,417 of foreign exchange
differences relating to US corporation tax payments.
Deferred Tax
The analysis of deferred tax included in the financial statements at the end
of the year is as follows:
2024 2023
£ £
Deferred tax assets
Tax losses carried forward 1,513,556 1,891,000
Unexercised share options 1,140,859 -
Deferred tax assets 2,654,415 1,891,000
Deferred tax liabilities
Overseas temporary differences (240,338) (219,921)
Deferred tax liabilities (240,338) (219,921)
Net deferred tax asset 2,414,077 1,671,079
The deferred tax included in the Group income statement is as follows:
2024 2023
£ £
Deferred tax asset recognised for losses (377,444) 1,603,593
Deferred tax asset for deduction on unexercised share options 1,140,859 -
Overseas temporary differences (34,380) (219,026)
Unwind of deferred tax liability on business combinations - 75,592
Total deferred tax credit 729,035 1,460,159
5. EARNINGS per share
Basic earnings per share is calculated by dividing the result attributable to
ordinary shareholders by the weighted average number of shares in issue during
the year. The calculation of diluted EPS is based on the result attributable
to ordinary shareholders and weighted average number of ordinary shares
outstanding after adjusting for the effects of all dilutive potential ordinary
shares. The Group's potentially dilutive securities consist of share
options.
2024 2023
£ £
Profit after tax attributable to the owners of the parent Company 8,841,126 5,925,003
Number Number
Denominator - basic
Weighted average number of ordinary shares 294,732,077 292,715,123
Denominator - diluted
Weighted average number of ordinary shares 294,732,077 292,715,123
Weighted average number of option shares 13,415,329 9,961,871
Weighted average number of shares 308,147,406 302,676,994
Pence Pence
Basic earnings per share 3.00 2.02
Diluted earnings per share 2.87 1.96
6. Intangible assets
Goodwill Customer database Software Development costs Licenses Domain names Intellectual Property Total
£ £ £ £ £ £ £ £
Cost
At 1 January 2023 6,799,250 1,490,537 1,408,831 21,866,682 319,471 8,874 5,859,424 37,753,069
Additions - - 16,627 4,633,403 141,124 - - 4,791,154
Disposals - (5,124) - - (80,398) - - (85,522)
Exchange differences (53,694) - - (36,573) (292) - - (90,559)
At 31 December 2023 6,745,556 1,485,413 1,425,458 26,463,512 379,905 8,874 5,859,424 42,368,142
Additions - - - 5,448,619 145,819 - 17,559 5,611,997
Disposals - - (147,142) (1,297,884) (48,629) - - (1,493,655)
Exchange differences (54,752) - - (121,850) (213) - - (176,815)
At 31 December 2024 6,690,804 1,485,413 1,278,316 30,492,397 476,882 8,874 5,876,983 46,309,669
Accumulated amortisation and impairment
At 1 January 2023 1,650,000 1,490,537 1,383,471 15,253,140 129,430 8,874 5,414,765 25,330,217
Amortisation charge - - 33,347 3,239,928 145,874 - 444,659 3,863,808
Disposals - (5,124) - - (80,398) - - (85,522)
Exchange differences - - - (13,137) 65 - - (13,072)
At 31 December 2023 1,650,000 1,485,413 1,416,818 18,479,931 194,971 8,874 5,859,424 29,095,431
Amortisation charge - - 8,640 3,793,684 204,935 - 1,767 4,009,026
Disposals - - (147,142) (1,297,884) (48,629) - - (1,493,655)
Exchange differences - - - (69,496) (215) - - (69,711)
At 31 December 2024 1,650,000 1,485,413 1,278,316 20,906,235 351,062 8,874 5,861,191 31,541,091
Net book value
At 31 December 2023 5,095,556 - 8,640 7,983,581 184,934 - - 13,272,711
At 31 December 2024 5,040,804 - - 9,586,162 125,820 - 15,792 14,768,578
7. Share capital
Ordinary shares
2024 2024 2023 2023
Number £ Number £
Ordinary shares issued and fully paid of 294,826,444 294,826 293,667,839 29,366,782
0.1 pence each (2023: 10 pence each)
The increase of 1,158,605 ordinary shares relates to the exercise of share
options during the year. The authorised number of shares at 31 December 2024
was 300,873,443 (31 December 2023: 300,873,443).
On 16 July 2024, following approval by the High Court of Justice, the Company
completed a share capital reduction, which included the cancellation of the
share premium account. The nominal value of each ordinary share was reduced
from £0.10 to £0.001. The capital reduction was registered with the
Registrar of Companies on 1 August 2024.
The cumulative change in the nominal difference of the issued share capital
was credited to retained earnings along with the entire share premium balance
as demonstrated in the consolidated statement of changes in equity.
The changes in issued shares, share capital and share premium as a result of
these events is shown below.
Issued shares Share capital Share premium
£ £
At 1 January 2023 292,006,775 29,200,676 87,653,774
Exercise of share options 1,661,064 166,106 79,114
At 31 December 2023 293,667,839 29,366,782 87,732,888
Exercise of share options 1,158,605 115,861 35,455
Capital reduction - (29,187,817) (87,768,343)
At 31 December 2024 294,826,444 294,826 -
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