Gaming Realms pretax loss narrows

Business News

Gaming Realms reported Tuesday a narrower loss in the year to the end of December compared to the previous year as revenue growth in its real money gaming segment and ‘significant’ cost savings bolstered performance.

For the 12 months to 31 December, losses after tax from continuing operations fell by £0.7m to £6.0m, adjusted earnings (EBITDA) rose to £0.8m from an EBIDTA loss of £2.0m, driven by 5% revenue growth in the company’s real money gaming or ‘RMG’ segment and costs savings.

Total revenues fell 7% to £31.6m, however, amid a loss of revenue from the white label operations and agency business, which the company sold last year. Like for like revenue, excluding the disposed assets, fell by 1%.

Marketing for the year fell to £10.4m from £14.8m as the group focused on more cost-efficient marketing strategies.

The total loss after tax increased to £8.2m due to impairment of £3.1m from the sale of Affiliate marketing CGU.

The company said the results for the year ending 31 December 2018 should be in line with management’s current expectations.

In a separate announcement, the company said Executive Chairman Michael Buckley has decided to shift to non-executive chairman with effect from July. Patrick Southon remain chief executive officer.

In addition, Atul Bali and Chris Bell have decided to step down from the board. The company said its board now will be made up of three executive directors and three non-executive directors.