Member Info for redjester

"2021 fiscal year, iSoftBet generated revenue of approximately 30 million euros and EBITDA of around 8 million euros. The company has approximately 350 employees and contractors." from https://www.nasdaq.com/articles/international-game-technology-to-acquire-isoftbet-in-eur-160-mln-cash-deal

GMR has 6.7m euro in ebita and revenue of 17.30 Euro, from only 57 games (I think isoftbet is around 125) and 62 full time staff.

Even ignoring the popularity of the slingo game format, just comparing them as 2 slots providers I think GMR looks very good against the isoftbet valuation.

Yeah I think your maths are right. Value of the deal has dropped to about 842p.

1 Share gets you 690p + 0.0359 gxo shares ($52.90 is the current sp, so £42.39*.0359 = 152p) total is 842p.

Although if the court date is today is it not too late to elect to take the all-cash offer?

I would be disappointed with a sale in 2022. We have guaranteed growth this year with all of last years deals starting to drop to revenue. We grow revenue by releasing more games and signing more distribution deals. This gives us a relatively stable cost base and pretty much guarantees improved margin as revenue grows.

Looking across the homepages for all the major gambling companies covering the UK/IRL, European and Scandinavian markets, slingo is becoming more and more prominent showing the gambling companies are backing it. Blueprint, one of the major slots providers, even tried copying the format with 'Prize Lines' which hasn't really landed. If imitation is the greatest form of flattery then that's high praise indeed.

As far as I'm concerned the new business model has been proven but a couple of years of backing that up with profits while the American market matures and I think we could sell for multiples of today's price. I think the market is still pricing us as a regular slots company, without pricing in the uniqueness and popularity of the slingo format.

This is on it's way to the moon. I don't think the previously signed deals are even reflected in the numbers yet. And 100% agree that it's IF not WHEN for the rest of the states. Most are in the process of figuring it out now, and the rest will jump on the tax revenue ASAP so as not to be left behind.

The game is really successful in the UK/I market but it's actually an American game so should do as well or better over there. I'm literally never selling this share.

Fair. I've traded in and out a little to keep myself sane but mainly buying long term. And long term I think this is still a steal at current price.

Although it's "in a rut" for 3 months having more than doubled in price in the previous 3 months, and the 3 months before that.

I don't understand the concern. The share is currently 4.5x it's low in March. Maybe people are taking a bit of profit which is holding it back a little now, but you can hardly say it has stagnated. It's still the highest it's been in about 4 years, and the company has completely transformed in that time.

As GMR's new games are rolled out across more and more sites, in multiple jurisdictions, I can't see any reason to complain about how the business is doing. The share price will reflect that in the long run

In my opinion anyway

Slingo deal or no deal live on Paddy Power and Slingo extreme live on Betfair.

Agreed. I dropped off this thread a bit as I thought there was a bit too much excitement sometimes ha. I thought this would take a while and like you said, there is a long way to go. They are yet to post a profit and I plan on holding until they are paying dividends so could be a long while. But their potential is unreal. They have a moat, cash in the bank (and more on the way), high margin and very low continuing costs. The only way I see myself not earning dividends from this share 20 years from now is we get bought for a decent premium.

There will probably be another dip knowing this one. The share price is just a graph of rich people's feelings (borrowed that from someone). A lot of things would have to go very wrong all at the same time all around the world to stop this now. Covid couldn't even slow it down. I even picked up a few shares on sale at 5p. Raging I didn't take more.

GLA

Been a while but sure I'll jump back in.

I don't want to predict the shareprice (although I said a while ago I thought 20p was fair and that has to be revised up) but in terms of the business what's not to like. Very interested to see the results and what effect they have. They have a unique product that is doing well everywhere it's launched. Restructured to take full advantage. Momentum building(although still some annoying delays) and unquantifiable upside in the US.

If you go on to sky bingo, coral, will hill, etc, etc etc the slingo games are very prominently placed. Some with their own section of the site. Sites only dedicate an area of their site to one game type if it's making money. Unheard of for one supplier to be the only one able to provide that game type.

I think a sale is possible but my new favorite route would be for GMR to license the game type to other suppliers. If anyone is familiar with megaways(the last thing to happen to the online slots world), they made games until they couldn't make any more, then they licensed their mechanic to other slots providers and boom, every game in the world has a megaways version.

I still have a nagging concern that the actual game mechanic itself could get looked at by the UKGC, but the company is clearly focusing on ROW so derisks that a bit. Still some notable gaps in the UK market as well. Paddy's/Betfair for example, but that might change since they bought sky

I've been trading in and out of this on spikes/dips but generally I'm holding here a few years and will be for years more. I think selling this for capital gains would be crazy. in 5 or 10 years this company will be paying serious dividends with very little ongoing investment needed. I've averaged in at about 10p.

Yeah the stake restrictions have me worried. We are heavily UK focused so if they come down as extreme as the UKGC are implying the will it could essentially kill the game in the UK. I do't think it would be enough to close the company, but would knock them back while they try and build global reach.

I think our only hope is banking on the UKGC not understanding how the game works. If someone sits them down and explains it to them I could see them banning it. Or at least banning a game feature that would essentially kill it.

imho. dyor

Thanks for the answer as well

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

Hey,

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

https://www.proactiveinvestors.co.uk/companies/news/903992/gaming-realms-launches-portfolio-of-slingo-originals-with-kindred-903992.html

More good news

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..........