Gaming Realms (GMR:AIM) 52.2p

Market Cap: £152.7 million

Gain to date: 59%

It has been just over a year since we flagged AIM-listed games distributor Gaming Realms (GMR:AIM) for its underappreciated growth prospects driven by the expansion of the popular Slingo brand.

For the uninitiated, Slingo games are a mash-up of slots and bingo and Gaming Realms has the intellectual property rights to the brand.

Pleasingly, the shares have been on a tear, jumping around 43% over the last six months taking gains since our buy recommendation on April 2024 to 59%.

WHAT HAS HAPPENED SINCE WE SAID TO BUY?

The company revealed another strong year of growth in 2024 with revenue rising 22% to £28.5 million, driven by the release of 12 new unique Slingo games and the launch of 44 new content partners across the globe.

Adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) grew 30% to £13.1 million representing a margin on sales of 46%, up from 43% in the prior year.

The business ended the year with cash of £13.5 million, up from £7.5 million, and remains debt free.

Reflecting the board’s confidence in the strategy and business model, the company announced an initial £6 million share buyback programme equivalent to around 4% of the firm’s market capitalisation.

Looking ahead, the company said it expects to deliver further growth in new and existing markets. So far in 2025 Gaming Realms has launched with five new partners and three new Slingo games.

Chief executive Mark Segal commented: ‘Building on the momentum, we have made an excellent start to 2025 with our recent launch in Brazil, a newly regulated iGaming market, which expands our global presence to 21 markets.’

WHAT SHOULD INVESTORS DO NOW?

The company continues to deliver on its three-pronged strategy to grow the number of Slingo games, launch with new partners and enter new territories.

Earnings are expected to grow by mid-double-digits over the next few years, while the growing cash pile presents further opportunities to reward shareholders.

Gaming Realms is a unique business, and the long-term potential remains exciting. 

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