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 EBITDA¹ 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: [email protected].

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

Enquiries

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.

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

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.

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

Consolidated Statement of Financial Position

As at 31 December 2024

Consolidated Statement of Cash Flows

For the year ended 31 December 2024