27th Sep 2018 10:20
LONDON (Alliance News) - Games developer Gaming Realms PLC said Thursday its interim loss narrowed despite a sharp fall in revenue as it shifted focus towards a licensing model for its games.
For the six months ended June, pretax loss narrowed to GBP2.9 million from GBP4.6 million the year prior. This was despite revenue falling 27% to GBP11.0 million from GBP15.0 million the year before.
Revenue dropped after the firm shifted towards a licensing model, with real-money & licensing revenue from its ongoing business rising 28% in the period. In the nine weeks since the period end, licensing revenue has increased 88% year-on-year, it said.
However profit performance was helped by a sharp fall in expenses during the period. Combined marketing, operating and administrative costs were slashed to GBP10.7 million from GBP16.7 million the year prior. This was driven primarily by a sharp reduction in marketing and administrative expenses.
"Our strategy moving forward is to leverage our real-money gaming platform and our market leading 'Slingo Originals' games library into the UK and international gaming markets," Gaming Realms Chief Executive Officer Patrick Southon said.
"We believe that licensing our platform and content to leading brands and gaming operators will deliver high-margin revenues, and we have been very pleased with the results of our efforts over the first half of 2018," Southon added. "We look forward to delivering news about more developments on our strategy during the second half of the year."
Shares in Gaming Realms were 10% lower at 6.90 pence on Thursday.
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