In 2021, Gaming Realms experienced significant growth, marked by a notable increase in revenue and profitability.
Financial Performance
Gaming Realms reported impressive financial results for 2021, demonstrating robust growth across various revenue streams. Total revenue surged by 29% to £14.7 million ($18.7 million) compared to £11.4 million in 2020. Notably, licensing revenue experienced a substantial increase of 48%, reaching £11.1 million in 2021. Conversely, social publishing revenue witnessed a minor decline, dropping to £3.6 million, reflecting an 8% decrease.
Profitability and Efficiency
The company’s EBITDA saw a remarkable surge of 146%, reaching £5 million in 2021. Within this, the licensing segment played a pivotal role, generating £6.4 million EBITDA, a significant contrast to £3.5 million in the previous year. Despite a slight decrease, the social publishing segment still contributed positively, generating £1.1 million EBITDA compared to £1.4 million in 2020. Moreover, head office overall costs decreased to £2.5 million, down from £2.9 million in 2020, primarily attributed to an increase in share options and charges related to business development activities.
Profitability Transformation
Gaming Realms achieved a remarkable turnaround in profitability, transitioning from a loss of £1.5 million in 2020 to an after-tax profit of £1.3 million in 2021. This transformation underscores the company’s ability to execute effective strategies and capitalize on growth opportunities.
Operational Expansion
Operationally, Gaming Realms expanded its portfolio, boasting 53 proprietary games on its remote game server. The company also made significant strides in geographic expansion, launching its services in two regulated iGaming markets in the US, namely Michigan and Pennsylvania. Furthermore, it entered the regulated iGaming markets of Italy, Romania, and the Netherlands in Europe, demonstrating its commitment to global expansion and diversification.
Strategic Partnerships
Gaming Realms forged new partnerships with 35 companies for the distribution of Slingo Original content. Notable partners include Wynnbet, Sisal, Aspire Global, and Goldbet. These partnerships enhance the company’s distribution network and extend its reach to a broader audience, driving revenue growth and market penetration.
Q1 Performance and Future Outlook
In Q1 of 2021, Gaming Realms sustained its growth momentum, with a 43% increase in licensing revenue to £3 million. The company also expanded its presence in Spain through partnerships with Gamesys and Yo Bingo, a subsidiary of the Rank Group. Looking ahead, Gaming Realms remains optimistic about its future prospects, particularly in newly regulated iGaming markets. The recent expansion into Quebec with Loto-Quebec and the acquisition of an iGaming supplier license for Ontario position the company for continued growth in the coming year.
Gaming Realms’ performance in 2021 reflects a year of remarkable growth, driven by strategic initiatives, operational expansion, and financial discipline. The company’s ability to adapt to evolving market dynamics and capitalize on emerging opportunities underscores its resilience and competitiveness in the gaming industry. With a strong foundation in place and a clear growth trajectory, Gaming Realms is poised to sustain its momentum and deliver value to its stakeholders in the years to come.