(Alliance News) - Gaming Realms PLC on Tuesday reported a narrowed loss for 2019 as it announced first quarter results ahead of expectations.
Shares in the game developer were trading 0.1% higher at 7.53 pence each on Tuesday afternoon in London.
The London-based company said that revenue for 2019 was 11% higher at GBP6.9 million from GBP6.2 million reported for 2018. Pretax loss was GBP4.7 million, narrowing from GBP6.0 million.
Like in the year prior, no dividend was declared.
The increase in revenue was driven by the Licensing division which recorded an 84% rise in its contribution to GBP4.1 million from GBP2.2 million the year prior on the successful implementation of the strategy of growing games content, and distribution to a higher number of operators in Europe and the US.
Revenue from the social publishing division fell by 30% to GBP2.8 million from GBP3.9 million as a result of tighter cost control which saw marketing and operating expenses reduce by 68% and 22% respectively.
During the year, Gaming Realms completely exited the B2C market due to increased regulations, "significantly" higher costs, increased taxation and reduced margins.
Post period end, the company said its licensing revenue for the first quarter has risen by 90% year-on-year to GBP1.3 million. It added that it has launched games with six new partners including Sky Betting and Gaming in the UK, Draftkings in New Jersey USA and Caliente in Mexico
Looking ahead, Gaming Realms said the disposal of its B2C businesses means the company is now focused on the development and international distribution of mobile-focussed gaming content and brand licensing, using its Slingo online gaming intellectual property. It added that it has already agreed contracts with new distribution partners and plans to roll out additional proprietary content throughout the year.
The company added that it continues to see a high level of demand for its products amid the Covid-19 pandemic.
"This year has started well. We have submitted an application for a new license in Pennsylvania, US which we hope will be granted by year end, and a number of operators in Pennsylvania have already agreed to take our games once they are licensed and approved. We will continue to expand in the US as further states decide to regulate online casino gaming," said Executive Chair Michael Buckley.
As at the end of 2019, Gaming Realms had cash of GBP2.6 million.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Gaming Realms (GMR)