Gaming Realms Plc · LSE:GMR
Gaming Realms — H1 2018 Earnings Presentation
16 slides from Gaming Realms's earnings presentation, 2018
Slide 1: H1 Results & Investor Presentation
H1 Results & Investor Presentation
Slide 2: Presentation Materials disclaimer and market sounding notice
These presentation slides and the accompanying verbal presentation (together the “Presentation Materials”) are confidential. promotions on the grounds that they are directed only at: (i) persons whose ordinary activities involve them in acquiring, By accepting these Presentation Materials you agree
Slide 3: Overview
OVERVIEW ORIGINAL MOBILE GAMING: Focusing on licensing games and B2B ‘white’ labels £400k adjusted 28% increase in Decrease Social EBITDA for H1 2018, proforma revenue Publishing by 48% an increase of £1.5m of Licensing and with reduction from H1 2017 loss of Real Money of marketing £1.1m Gaming ver
Slide 4: Financials: Group P&L
FINANCIALS GROUP P&L Group Reported Proforma 6M 30 Jun 6M 30 Jun Change 6M 30 Jun 6M 30 Jun Change • Adjusted EBITDA £0.4m (2017 £-1.1m) 18 17 18 17 £m £m % £m £m % • Proforma EBITDA -£1.4m (2017 £-4.4m) Revenue 11.1 15.7 (29%) 6.8 7.7 (11%) • Proforma 53% reduction in Marketing expenses (2.8) (6.4)
Slide 5: Proforma Group Revenue Bridge
PROFORMA GROUP REVENUE BRIDGE 28% 10.0 increase in Real Money 9.0 and licensing to 0.4 8.0 £4.8m 0.6 1.9 7.0 48% 6.0 5.0 reduction 4.0 7.7 in Social to £2.1m 3.0 6.8 following reduction marketing by 88% to 2.0 £0.2m (£1.6m) 1.0 0.0 H1 2017 Real Money Licensing Social H1 2018 Revenue Revenue
Slide 6: Proforma Real Money Games
PROFORMA 18% increase REAL MONEY GAMES in revenue with 31% reduction in marketing Real Money Gaming Proforma 6M 30 Jun 6M 30 Jun Change 18 £m 17 £m % 10% further increase Revenue 4.1 3.5 18% Post period end Marketing expenses (1.9) (2.7) 31% Operating expenses (2.0) (1.6) (25%) Administrative expens
Slide 7: Proforma Licensing
PROFORMA 200 % LICENSING increase in licensing Licensing Proforma 6M 30 Jun 6M 30 Jun Change 18 £m 17 £m % 88 % increase Revenue 0.6 0.2 175% post period end Administrative expenses (0.5) (0.5) 17% Adjusted EBITDA (0.1) (0.2) 135% Headcount 23 16 41% 6% new contracts Signed 7 headcount increase to a
Slide 8: Proforma Social Games
PROFORMA SOCIAL GAMES Social Proforma 6M 30 Jun 6M 30 Jun Change Adjusted Ebitda 18 17 increased 185 % £m £m % Revenue 2.1 4.0 48% to £1m Marketing expenses (0.2) (1.6) -88% Operating expenses (0.6) (1.0) -42% Administrative expenses (0.7) (2.0) -86% Adjusted EBITDA 0.6 (0.7) 185% Cashflow (0.05) (1
Slide 9: Sale of B2C Assets & Affiliate Business
SALE OF B2C ASSETS & AFFILIATE BUSINESS • 70% of B2C brands for 5.5 x EBITDA • Minimum payment of £8.4m up to £23.1m • GMR to charge 5% platform and 10% licensing fee for ‘slingo originals’ • Remaining 30% to be bought 2020 • Use of initial proceeds to expedite licensing and platform • Sale of 100%
Slide 10: Platform Features: Real Money Games
PLATFORM FEATURES REAL MONEY GAMES Launch new real money Platform mobile platform with over 31% play increased to improvement in loading 92% compared to speed 82% in 2016 (source: testmysite) Launch new New GAMSTOP & EKYC gamification tool features in line with with levels to reduce higher UK regula
Slide 11: New Games Launched
6 NEW GAMES LAUNCHED WITH OVER 20 LIVE Cost per game is £61k Games translated reduced from £144k into 15 languages (H1 17) with new game studio in Colchester 75% mobile play Younger 25-34yr across partners old key audience
Slide 12: Branded Formats Point to Future
BRANDED FORMATS POINT TO FUTURE Slingo combination Played over 5 bn slot and bingo time in lottery, land developed over based, social and now 20 years ago Online casino markets Can be bonded to Fills the gap left by existing games/ bingo brands to create new gaming vertical
Slide 13: New Licencing Partners and Revenue Growth
NEW LICENCING PARTNERS AND REVENUE GROWTH £400,000 £350,000 £300,000 £250,000 Revenue £200,000 £150,000 £100,000 £50,000 £0 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 * *based on first 11 weeks Post period end
Slide 14: Addressable Online Market Worth $21bn
ADDRESSABLE ONLINE MARKET WORTH $21bn 8% OF GLOBAL TOTAL* Skill/Other gaming/ Lotteries Resales 5% State Lotteries 8% • $21bn Global market for online casino, lottery, bingo; Bingo 4% Poker • 10% growth per annum Online Global 6% Market Breakdown Betting • Mobile share increasing to 51% of interacti
Slide 15: Outlook: Focus on Slingo & International Opportunity
OUTLOOK FOCUS ON SLINGO & INTERNATIONAL OPPORTUNITY Licensing Platform • Focus on ‘Slingo’ style mobile • Launch 1 new ‘white games label’ site • 6 new games (branded and • Focus on original) H2 internationalisation platform • Enter New & regulated markets – Pennsylvania, Spain & Denmark H2 (H1 2019
Slide 16: Contact details
1 Valentine Place SE1 8QH Patrick@gamingrealms.com