Slingo.com operator soon to enter realm of profit

Slingo.com operator soon to enter realm of profit

Tuesday, September 13, 2016 Posted by Andy McCarron
Gaming Realms hopes for an operating profit by end of year

Mobile gaming and gambling operator Gaming Realms has seen its revenues double in the first half of 2016 over the same period last year as the company’s pivot towards mobile gaming continues to show signs of paying off.

Back in 2015 the company realigned its strategic focus to concentrate on its proprietary Grizzly mobile gaming platform and on producing innovative mobile content for both real-money and social gaming.

The move appears to have paid off. Total revenue in the six months to June rose over 100% to £16.6m. The rise was driven by a 140% uplift in real-money revenues from the Grizzly platform to £10.2m and a £3.8m contribution from the social gaming assets bought from Real Networks in August last year.

The company made an EBITDA loss of £3m in the first half, but the company said this was due to the front-loaded investment in marketing related to the group’s ongoing investment in the Slingo.com product and the recent launch of the Britain’s Got Talent games. Marketing rose to £9.5m in the first half compared with £5.1m in the same period 2015. Pre-tax losses hit £5.8m in the period compared to a loss of £3.5m in the first half 2015.

The company said it hoped to be EBITDA positive by the end of the year.

The KPI metrics were as impressive as the top-line revenue increase. Average monthly users rose by 250% to 55,387 while the number of new depositing players was similarly up by over 250% to 143,282.

Mobile usage predominates on the Grizzly platform, with 84% of depositing players using mobile up from 80% in the first-half of 2015.

The success of the Slingo.com game was highlighted during the period with licensing contracts signed first Zynga for a social casino version of the game and with Scientific Games for Slingo.com branded slot machines.

The company has launched an X Factor game during the period and signed a deal with Bauer Media for the co-promotion of its SpinGenie offering via selected radio, digital and magazine titles including Heat and Closer.

Chief executive Patrick Southon lauded the company’s lower than average acquisition costs. He added that revenue per active real-money player in the first-half 2016 has increased by 56% to £110 versus the same period last year. “At the same time, we have streamlined the business through the disposal of our third-party platform bingo sites and marketing agency,” he said.

Gaming Realms sold the third-party bingo sites, including its Iceland Bingo site, for £2.9m in February to Silverspin Media and Black Spark.

Totally Gaming says: Gaming Realms have called the pivot to mobile right, going by these results. The Slingo.com product is certainly gaining momentum going by the deals signed with Zynga and Scientific Games over the period and there is a lot to like about a company which is managing to drive both its real-money and social gaming revenues.

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