After making “excellent progress” in the first half of the year, Gaming Realms PLC (AIM:GMR, FRA:RNE1, OTCQX:PSDMF) anticipates full-year earnings to be in line with expectations.
The provider of mobile-focused game content predicted that growth would continue in the second half of the year, with the company particularly enthusiastic about recent launches in Michigan and Pennsylvania in the United States. In addition, the company is going to begin the application process for a license in Ontario, Canada, which has indicated its intention to regulate online gaming.
Total revenue increased by 50% to £7.7 million in the first half of 2021, compared to £5.2 million in the same period of 2020.
Licensing revenue climbed by 73% to £5.8 million from £3.4 million the previous year, while social media revenue increased by 7% to £1.9 million from £1.8 million.
Adjusted underlying earnings (EBITDA) increased by 116% to £2.68 million from £1.24 million the previous year. The profit before tax was £803,928 compared to a deficit of £692,578 in the first half of last year.
At the end of June, cash and cash equivalents had climbed to £3.92 million, up from roughly £850,000 a year earlier.
Gaming Realms has analyzed future European development options and is prepared to debut in additional regulated markets in the second half of the year, following the group’s successful entry into the Italian regulated market earlier this year.
With a robust game development pipeline, a clear strategy to continue increasing its worldwide distribution, and continued demand from the group’s clients, the board anticipates full-year trading to be in line with market expectations and is confident in the business’ strategic outlook.