Gaming Realms, the company which develops and licenses mobile social and gambling games such as Deal or No Deal Casino and Love Island Games, has seen its share price take a battering as it announced interim results this morning.
Although Gaming Realms saw like-for-like revenue growth of five per cent to £15.7m in the first half of the year, shareholders seemed disgruntled that the company has not yet reached profitability.
Its share price was down almost five per cent at the time of writing, although the business had reduced its losses by 71 per cent to £0.9m compared to the first half of 2016.
Gaming Realms noted that it had reduced headcount by 28 through synergies in social publishing, saving £2m.
Why it's interesting
Despite shareholders' apparent disappointment this morning, Gaming Realms expects to be in the black for 2017 as a whole in terms of earnings before interest tax, depreciation and amortisation (Ebitda).
The business was active in the first half of this year, launching real money gaming sites Deal or No Deal Casino and Love Island Games and signing four licensing partnerships for distribution of its games.
It predicts that the second half of this year will be “significantly Ebitda positive”.
What Gaming Realms said
“The group has made significant progress towards profitability in the first half of 2017, with first-half losses reduced, and the board anticipates that the group will be Ebitda positive for the year as a whole,” said chief executive Patrick Southon.
Our strategy of focusing our resources and capital on real money gaming, whilst continuing to deliver content to other operators, is driving revenue growth. Additionally, our focus on synergies, cost management and reduction is driving improved profitability.