Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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).
https://riverigaming.com/wp-content/uploads/2018/11/Investorpresentation_Q3-2018.pdf
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
http://www.gamingrealms.com/gaming-realms-signs-3-year-sublicensing-deal-with-scientific-games-digital-to-develop-new-slingo-monopoly-game/
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
Yeah all the headlines are focusing on rev dropping, when that has been the defined strategy for a while now. Rev dropping and ebita loss reversed into a small positive.
I'm guessing people just aren't looking closely enough. Pivoting to licensing and that's increasing massively.
Headlines like this can't have helped
http://www.igamingbusiness.com/news/gaming-realms-suffers-after-switch-focus
https://totallygaming.com/news/online/gaming-realms-banks-b2b-drive-growth-after-h1-revenue-fall
http://www.gamingintelligence.com/finance/49256-gaming-realms-sets-sights-on-slingo-licensing-as-gaming-revenue-declines
Still think it's an over reaction.
Revenue in b2c was dropping before the sale so they might not be getting full credit for the sale price. Selling the affiliate business and the b2c stuff might make it look like they're in trouble. They are still loss making to be fair.
It's going to take time for the licensing business to grow but I thought these results would show it's working. 6 deals signed this year that weren't live for all of H1. Revenue up another 88% since the period end so that's 1.1m mil already. We're trading at 5 times cash in the bank
I dunno, people are crazy. I topped up anyway.
It's £18.9m coming over the next few years as £4.2m already received, and £14.7m of that £18.9m is on an earn out basis, but still at 6.7p a share the market cap is ~£20m. That's crazy.
"Licensing revenue increased by 175% to £0.6m (H1/17: £0.2m), & Licensing revenue increased 88% in the 9 weeks post period end."
With a shift to licensing those numbers look great. Admittedly it's from a small base so may require some more patience but 6 new deals signed this year should see that accelerate over the next few years.
It's all upside from here IMO
I think it could easily hit that price with the next set of financial results. All of the B2B deals from the start of the year and end of last year will have been hitting the bottom line for months.
The slingo games are obviously performing great if GCV signed a bigger deal and rolled them out worldwide. On coral 6 of their 24 top games are slingo, 3/6 in the top row, and one in the top banner. They wouldn't be taking up that space if they weren't performing well.
Market may have overreacted to the drop in revenue but the B2B side will have a much bigger margin so the next results could be the catalyst we've been waiting on
A month and 3 months old
https://www.youtube.com/watch?v=3f16bDBwRGE
https://www.youtube.com/watch?v=14fUwND5RRM
EGR Intel: What were your primary motivations for concluding this deal?
Patrick Southon (PS): We’ve chosen to sell 70% of our B2C business to allow us to focus on our licensing and B2B business. Even though the licensing arm of our business is very small at present, it’s a significant growth area for us at this stage.
For us there is a conflict of interest in being both a B2C operator while also being a licenser of content as well. So, what we are trying to do is deliver resources so that we can speed up growth in our licensing arm while also simplifying our messaging to the market and getting rid of any perceived conflicts of interest with our B2B partners. It’s a strategic move to simplify our offering. We are a small operator and as a result we can’t do everything but what we are trying to focus on is areas which have the potential to generate maximum profit.
EGR Intel: Who are River iGaming and why have you chosen them as a business partner?
PS: River iGaming are a new company who were only listed on the Oslo stock exchange last year. They are pursuing a strategy of investing in acquisitions in the gaming market, as they have done in the UK with Gaming Realms. As a part of the deal, a new business, River UK casino has been created which will be jointly owned with Gaming Realms.
River iGaming has an investment focused team and is backed by some prominent industry names, such as Morten Klein, the Chairman of Cherry AB. This deal will see a unique combination of UK market focused brands and experience fused with expertise in the Norwegian and wider Scandinavian market. They have operations in Malta and they are actively recruiting as the operations develop. That is important for us because our marketing team can very much become part of that growth story. Their business model also mirrors that of Gaming Innovation Group, which is a very successful business.
EGR Intel: You’ve chosen to sell 70% of your B2C business but retain the Slingo brand, what was the rationale there?
PS: Slingo is very much linked to our strategy of licensing, because we wanted to have a small site which we can launch games on and test how they go before rolling them out. In addition, it was more difficult to include Slingo and the Slingo brands as part of the deal because of the extensive links that it has to our other products.
EGR Intel: What’s next on the horizon for Gaming Realms?
PS: Obviously, we are primarily invested in growing our licensing business and are hoping to announce more licensing deals in the future. In addition, we have retained our social gaming business which we are hoping to do something with either commercially or strategically, so I think our activity over the coming months will be in these two areas.
I think even the 20p 'target' is pretty small considering this deal.
From that article, 'Added together the SOTP equals £63.895 million or 22.5p per share.'
That's just the sum of the parts. When you add in the extra revenue, the positive B2B improvements, increasing revenue, USA activity ramping up across the board and the GVC deal surely this business is worth more than just the SOTP.
Yeah you're right, but I think the B2C side is going to be harder and harder for them in the long run. I think I said this before but if you look at those sites and compare them to something like william hill they are not going to make a lot of money, without focus and investment on them.
However, I think the B2B side will grow exponentially. With all the licencing deals, each new game will hit a huge audience and they will get a rev share. Just my opinion but I think that's where their strength is. The slingo games are great and must be performing well if GVC have rolled them out worldwide after a short enough run in Jersey.
Yeah it feels like any bit of news causes this board to scream BOOM, but I don't get this one. Granted the 23mil is based on some targets and it will be a while, but they sold 70% of the under-preforming part of the business for the current market cap, to focus on what they have been doing best at. For once I agree with stew. Where's the BOOOOOOOOOM?
I can't find a lot of good news in the report that wasn't already released. Revenue down 7%, loss after tax increased 22% and loss per share increased 15%. The tax increase for online gaming after the FOBTs will hurt them. PASPA repealing won't help and the recent deals are good but they aren't amazing. WWTBM already have a lot of bingo and slot games. The white label sites are awful and will need serious investment to grow, in what is already a really competitive market. I Like the focus on RMG and think they are setting themselves up for long term sustainable growth, but I think it will be a long road. Paspa repealing might make us a takeover target, if only because american firms will be buying up loads of sports/gaming sites for the foreseeable future to get up and running quick in the US. But UK gaming firms will be buying sports businesses in the US for the same reason so that could make us less appealing as well It feels like we're the last to find out as well considering how late the results are and the none reaction from investors. I bought this only a year ago and am holding for the long term but a sudden jump seems optimistic considering the shares history. Holding for the long term might be optimistic as well ha. I think we're trading close to book value though so hopefully it's all from here.
There was an RNS but it isn't showing above there. We estimate that the direct, pre-mitigation, impact of this new stake limit would be a 33% to 43% decrease in our total machine gaming revenue. In 2017, this would have equated to a �35m to �46m revenue impact, representing 2.0% to 2.6% of Group revenue.
Every bookie has a poor rating on trust pilot. People don't like losing money so they slate them on review sites. PP actually has a better rating than bet365, ladbrokes, coral or Boyles.