He does control 40% of the voting rights, either through his shares or alliances. It could well go through closer to 300 than 500. I'm going to hold for now anyway. Will be interesting to see how it plays out
Press speculation seems to think the bid will be around 300m, which is about the current share price. Why are people thinking 500m is realistic? Are we thinking a competing bid of 500m could be coming? Would they not build their position at ~£3 for a while first? Honestly asking
Mostly correct yeah.
We build games and sign a rev share agreement with gambling sites, coral for example. Tech teams on both sides have to do integration work so that the games on our servers can be played from coral's site. The site can then decide which of our games it wants to take, based on popularity of the game, the other games they already have and where they see a gap etc. Then the sites launch the games, customers can play the games online(or mobile) without downloading and then at the end of the month we get a revenue share from the sites. Obviously the rev share is different and not released, but generally you'd be looking at 5 to 20%. Bigger slots providers can haggle for a higher rev share as sites will really want their games.
We definitely seem to be taking a lot of time to complete an integration, hopefully something they are addressing, especially now that we have transitioned and can free up resource. The site can also be the cause of delay. The dev teams can only work on 1 or 2 integrations at a time and they could be working on another suppliers. Also everyone's systems are different so issues can pop up all over the place. they have mentioned a steady pipeline that we have built up but yeah any new deals go to the back of that pipeline.
therefore the best deals are with content aggregators, (relax gaming as an example) as they've done this work with the sites already. We just integrate with them once and we can go live on multiple sites soon after signing a rev share agreement.
Once the integration is done, launching new games becomes more profitable as sites we are already setup with can launch our games after a little testing.
Our advantage is the game type slingo. There has been next to 0 innovation in online slots for years, other than graphics. This is an actually different game type that customers are loving so now that we are live with some of the big UK sites, the rest will have to scramble to play catch up and will be looking to ASAP. Most are integrated with relax gaming so we should see more of the bigger sites hosting our games very shortly.
On sites like coral they have hundreds of slot games so it's hard to break through the noise, but with a different format we are in a great spot. And the games are obviously performing well for the sites as it's in a very prominent position on their homepage for months. Something they would monitor and make changes to at least monthly
There isn't really anything of surprise in the report to be honest so I think Align will stay where they are for now. I would hope these results confirm Aligns opinion to the market and we start to close the gap over the short term, but for now I think 20 to 30 is still fair.
167% growth again over the next six month and I may change my mind though. Short term there is quick cash to be made with the valuation gap but I still plan to hold this long term . They are developing a very defend-able position in the market, with global reach and amazing growth potential. Each new game they launch will be distributed to more and more sites, and each new site they integrate with will get more and more games out of the gate. Fast forward to the end of 2020 and we have a streamlined business, that's cash generative, with rev share agreements for the biggest online casino and a unique, protected game type.
The last innovation in online slot games was "megaways". I won't go into it but the company that owns the megaways mechanic just licenses that out to other developers now. They don't even have to make their own games to make money anymore as developers are scrambling to build megaways games for them.
Also the William Hill deal is huge. Aside from their size, it will light a fire under the other UK tier 1 operators who will need to catch up. Lads/Coral pushing slingo hard for a while now. PPB, Bet365, etc will be keen to catch up.
The one thing I think GMR need to improve on is the time it takes to integrate with a site post signing a deal. But with the content aggregation deals, streamlining of the business and cash on hand hopefully that will be improving soon. A lot of deals in the pipeline so they need to speed up that pipeline IMO
In august Align said 329% upside. http://www.alignresearch.co.uk/gaming-realms/gaming-realms-new-game-launched-in-association-with-gaming-industry-giant/
And according to the report, 2019 full year results will be inline with market expectations. Align being one of the only analysts covering GMR
My price target has been 20p for a long time now (aligns is 26.79p). Bought in first at 12, kept buying down to 4, average of 5.8 at the moment so finally tipping into profit. Still baffled this isn't at least into the teens
The Group's cash position today is c.£4m following completion of the deal in July 2019
Post reporting period
The Company has received an initial cash sum of £7.35m, with a deferred consideration of £1.5m due on or before 31 December 2020.
Licensing revenue increased 88% in the 9 weeks post period end vs comparative period in 2018
Net assets - 14,567,169, (plus 11.5m post reporting period), market cap of 20m.
If anyone can explain how net assets in June of 14.5m, cash sum of £7.35m received post period, River assumed £2.65m, being the net liabilities of bear group and £1.5m due on or before 31 December 2020 adds up to a market cap of 20m I'll buy them a pint
Much smaller might be harsh but they develop instant win games, not slots. Basically online scratch cards which do a lot less revenue. and the deal is only for limited exposure to these lotteries markets so maybe it isn't big news but the US market has me interested. Hopefully some more details in the results soon..........
I think the catalyst for this will be the next results (although I have thought that about previous results). Surprised this isn't getting more traction though.
Much smaller developer but hitting markets GR don't have a lot of exposure to and Slingo fits really well with their current portfolio.
I didn't think they were going bust. I just didn't think finding out the 14m earn out we were waiting on being ,confirmed as 0 was good news. At the time they were talking about a possible "return to shareholders" because they wouldn't know what to do with all this money.
They're still on track but a long way away at the moment
When selling to river in the first place the statement said, 2017 rev of 2.2m, which the board believes will be significantly higher, and has to be 6m to get the full earn out of 14.7m
9 months later, they don't believe they'll hit the 2.2m to get any further earn out, and have had to sell more assets
How is that good news?
Gaming Realms is of the opinion that River UK Casino is unlikely to meet the £2.2 million EBIT target for the 12 months to 30 June 2019 required for the Company to gain any further deferred consideration in connection with the Acquisition (as set out on 27 June 2018) beyond the Contracted Deferred Consideration
So instead of £14.7 million, we're giving the remaining 30% of the b2c, and the rest of the b2c revenue in exchange for £7.3
I suppose if wraps it up a bit faster but 9 months ago we were told there's a max payment of 14.7m and now there is no further consideration from that, so we have had to sell more assets
Next results out on the 28th for River UK Casino. If they have continued the performance from q3 the results should be confirming the full payout for GMR, meaning a one time payment of just under the current market cap.
That's on top of the 8m guaranteed (half received already).
Yeah no RNS it seems but it was updated on GMR's website today. The current price is ridiculous but it will take a catalyst to reverse it. I thought that would be the last results showing +EBITA but I guess we're waiting for actual profit. With the river casino money, and a few pretty big deals towards the end of the year that have to be coming online soon, SURELY the next set of results will be enough to send this higher.
Until then I'm not getting too attached to profit from these bumps. We've seen it too many times already to get excited by gains that will be gone tomorrow.
On another question, with this "forced seller" how comes there no RNS re their holdings? A serious volume has been sold at this point. They must have crossed a threshold by now no?
Today's bump is probably just about this
Mecca are huge in the Bingo market so good to see them pushing slingo to their base. Mail below:
If you like slots and bingo - you’ll love Slingo! Slingo casino games are a hybrid of 75 ball bingo and a traditional slots machine. You’ll see a 5x5 bingo ticket on screen with one row of slots reels at the bottom of the grid.
How do you play?
Like with slots, you need to stake to spin the reels. However, you will get a set number of spins for your stake.
With every spin, the reels at the bottom of the screen will display numbers or special symbols. If your ticket has the number in the same column that it appears on the reel, it gets crossed off. There are free spins, instant prizes and bonus symbols to land