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LONDON (Alliance News) - Gaming Realms PLC Wednesday reported a wider pretax loss despite revenue seeing a large increase, as expected, and the company said growth has continued into 2015 and is set to continue throughout the year.
The online gaming product developer reported its results for the 15 month period ended December 31, 2014, after it changed its financial year to match the calendar year, which showed a significant increase in revenue but a substantially wider pretax loss as expected.
The company warned its loss would be wider despite the improved performance back in March, with its pretax loss for the 15-month period widening to GBP9.8 million from a GBP3.4 million loss in the period between July 2, 2012 and September 30, 2013.
Revenue shot up to GBP11.2 million in the period from only GBP881,060 in the previous financial year, which was offset by marketing expenses rising to GBP10.2 million from GBP1.8 million and administrative expenses increasing to GBP6.4 million from GBP1.1 million.
Earnings before interest, tax, depreciation and amortization showed a loss of GBP7.8 million compared to a GBP2.3 million loss in the previous period.
"Gaming Realms delivered a transformational year in 2014, the acquisition of QuickThink Media and Blueburra Holdings has enabled us to grow the customer base more rapidly. The completion of our proprietary platform and the successful inception of the SpinGenie brand have provided us with the foundations to deliver our unique gaming offering," said Chairman Michael Buckley.
Due to the company's acquisitions, Gaming Realms said average daily activity in the 15 month period rose to 4,198 players per day compared to only 1,102 players per day in the previous period.
At the end of December, the company reported no debt and a cash balance of GBP5.2 million.
"With our heavy investment in player acquisition and platform development, the board believe Gaming Realms is well placed to continue growth throughout 2015. We have seen very positive results in the first quarter of 2015, with net gaming revenue from real money on our platform increasing 80% quarter on quarter to GBP1.8 million," said the company.
In the first quarter of the current year, Gaming Realms said it has seen revenue continue to rise to GBP3.8 million, compared to GBP3.1 million in the fourth quarter.
"Revenue has grown 23% in the first quarter of 2015 as we focus on growing our new platform where 68% of our gambling revenues are coming from mobile and tablet play," said Buckley.
Gaming Realms shares rose by 2.0% to 34.18 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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