Gaming Realms Plc · LSE:GMR
Gaming Realms — H1 2023 Earnings Presentation
23 slides from Gaming Realms's earnings presentation, September 2023
Slide 1: Delivering Growth - H1 2023 Results
DELIVERING GROWTH Developer and licensor of award-winning real-money and social games. Trusted by millions of players and the world’s biggest brands. H1 2023 RESULTS SEPTEMBER 2023
Slide 2: Agenda
AGENDA 1. Our Business 2. Our Strategy 3. Our Performance 4. Investment Case
Slide 3: Our Business
GAMING REALMS OUR BUSINESS
Slide 4: Our Executive Team
OUR EXECUTIVE TEAM Michael Buckley Mark Segal Geoff Green Executive Chairman CEO CFO Co-Founder Co-Founder Finance Director Chairman Finance Director Senior Audit Manager Founder Director Finance Director Chairman Copyright. All Rights Reserved. Gaming Realms 2023. 4
Slide 5: Our Management Team
OUR MANAGEMENT TEAM Peter Russell Suki Sandhu Chief Technology Officer Chief Product Officer Starts October 1st Craig Falciglia Gareth Scott Business Development Chief Commercial Officer North America Rest of the World Copyright. All Rights Reserved. Gaming Realms 2023. 5
Slide 6: A Cut-Through Product Suite
A CUT-THROUGH PRODUCT SUITE A Leading Player in Real Money and Social Gaming GAME DEVELOPER SLINGO TM REAL MONEY DISTRIBUTION & & & PLATFORM LICENSOR SCRATCH SOCIAL (RGS) Copyright. All Rights Reserved. Gaming Realms 2023. 6
Slide 7: Diversified Across the Value Chain
DIVERSIFIED ACROSS THE VALUE CHAIN Participating in Multiple Segments of the Ecosystem CONTENT LICENSING BRAND LICENSING SOCIAL GAMING (CORE BUSINESS) B2B B2B B2C SlingoTM Lottery SlingoTM Unique Game Format Scratch Cards Arcade Share in Operator Success Diverse Revenue Streams. Multiple Markets on
Slide 8: A Premium Global Client Base
A PREMIUM GLOBAL CLIENT BASE Long Term Relationships with 150+ Leading Brands of the World Copyright. All Rights Reserved. Gaming Realms 2023. 8
Slide 9: Our Strategy
GAMING REALMS OUR STRATEGY
Slide 10: Our Growth Strategy
OUR GROWTH STRATEGY Strategic Objectives 1. International expansion 2. Deliver strong growth in core markets 3. Develop strategic partnerships 4. Invest in innovative games and product Copyright. All Rights Reserved. Gaming Realms 2023. 10
Slide 11: Our Performance
GAMING REALMS OUR PERFORMANCE
Slide 12: High Growth & Profitable Business
HIGH GROWTH & PROFITABLE BUSINESS Significant Operational and Financial Momentum 80 180 70 150 60 GAMES 120 50 40 90 OPERATORS 30 60 20 30 10 - - H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 10 Mil
Slide 13: Performance and Scale
PERFORMANCE AND SCALE KPIs at a Glance £11.5m 41% 100% £4.8m ($6.1m) ($14.6m) Regulated Revenue Adj EBITDA margin Adj EBITDA Partners H1 2023 H1 2023 160 + 18 70 4.6m Clients Regulated Markets Full Time Employees Unique Players Last 12 months 37% 38% 70 20% North America Content ROW Content Licensin
Slide 14: Diverse Distribution
DIVERSE DISTRIBUTION Constant Expansion and Highly Adaptable to Regulatory Changes Denmark Sweden Quebec Czech Republic British Columbia Netherlands Alberta United Kingdom Ontario Portugal Estonia and Latvia Michigan Spain Lithuania Pennsylvania Connecticut Mexico Romania New Jersey Malta Italy Gree
Slide 15: Gaining Global Scale
GAINING GLOBAL SCALE Rapid Expansion Across All Major Markets 30% 205% 28% H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 30% 374% 322% 63% H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 Copyright. All Rights Reserved. Gaming Realms 2023. 15
Slide 16: Financial Results
FINANCIAL RESULTS H1 2023 Income Statement Group H1 2023 H1 2022 Change HIGH MARGIN GROWTH £m £m % ✓ High revenue growth – 20% half year CGR since Revenue 11.5 8.5 36% 2019 Marketing (0.4) (0.1) 721% ✓ Content licensing growth +37% Variable costs (2.3) (1.8) 28% ✓ Low variable costs – 20% of revenue
Slide 17: Balance Sheet
BALANCE SHEET H1 2023 Balance Sheet 30 June 31 December Group 2023 £m 2022 £m Non-Current Asset 14.1 13.4 Current assets 5.2 5.3 (excl cash and cash equivalents) Cash and cash equivalents 4.5 2.9 Current liabilities (2.9) (3.5) Net Current Assets 6.8 4.7 Non-Current Liabilities (0.4) (0.2) Net Asset
Slide 18: Investment Case
GAMING REALMS INVESTMENT CASE
Slide 19: Investment Case
INVESTMENT CASE Strong Underlying Foundations (excl. US) 9,000,000 26% GROWTH 100 11 X REGULATED MARKETS 90 8,000,000 7,000,000 Growth accelerating with +38% in 80 H1’23 70 6,000,000 60 5,000,000 50 4,000,000 40 3,000,000 30 2,000,000 20 1,000,000 10 - 0 2018 2019 2020 2021 2022 Revenue (GBP) Operat
Slide 20: Investment Case
INVESTMENT CASE Existing US Content Licensing Momentum Scaling at Pace 4,500,000 277% GROWTH 4,000,000 3,500,000 GAMING REALMS QUARTERLY US 3,000,000 CONTENT LICENSING REVENUES (GBP) 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 2017 2018 2019 2020 2021 202
Slide 21: Investment Case
INVESTMENT CASE US Market Set to Grow by 3.7x (H2GC) 25,000 21,913 20,000 19,633 US IGAMING GGR 17,553 2019 TO 2027 ($M) 15,000 11,164 10,000 5,914 5,174 5,000 3,776 1,627 500 0 2019 2020 2021 2022p 2023e 2024e 2025e 2026e 2027e Copyright. All Rights Reserved. Gaming Realms 2023. 21
Slide 22: Delivering Growth
GAMING REALMS DELIVERING GROWTH
Slide 23: Disclaimer
DISCLAIMER These presentation slides and the accompanying verbal presentation (together the “Presentation Materials”) are confidential. The Presentation Materials do not constitute an offer of transferable securities to the public for the purposes of section 85 FSMA. The Presentation Materials are e