Gaming Realms plc has sold its affiliate portals, bingoport and freebingohunter, for a total consideration of GBP 2.4 million to 1ST Leads Ltd in line with its strategy to focus resources on its real money gaming and content development businesses.
1ST Leads paid GBP 2 million on closing, and a maximum of GBP 400,000 will be payable on December 31 2018, subject to the achievement of performance targets.
In related news, a trading update revealed the delivery of a maiden full year EBITDA of GBP 0.7 million despite significant headwinds which included increased point of consumption tax and additional legislation concerning responsible gambling, the company said.
Other highlights over the full year 2017 period include:
▪ Growth in real money gaming revenue of 5.5 percent.
▪ A 17 percent reduction in marketing spend and an increased operational focus on responsible gambling.
▪ The launch of Slingo Arcade helped to partially offset a 13 percent overall decline in social revenue.
▪ Completion of the $4.5 million payment of final tranche relating to the Blastworks acquisition.
Gaming Realms said it had had a strong start to 2018 with a slew of deals with 888 Holdings and Golden Nugget Casino, Ladbrokes Coral, Gaming Innovation Group,
Leander Games and the Health Lottery with real money gaming player value increasing 24 percent during the first two months of 2018.
The Company still expects overall EBITDA growth in 2018 but acknowledges that the sale of Bingoport will reduce EBITDA in the short term.
“2017 was a year of significant developments, with the Company delivering maiden positive EBITDA and successfully focusing resources towards real money gaming and licensing our Slingo Originals content to improve margins,” Patrick Southon, CEO, said. “The disposal of the affiliate portals marks the completion of this transition, and with further licensing opportunities to follow, we believe that the Company is in line for improved bottom line growth in 2018.”
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News on 26 Mar 2018 
