Gaming Realms PLC (L:GMRG) has announced that it has reached agreements to sell its third-party platform-driven bingo skins and associated websites (excluding bingoport.co.uk) for a total consideration of £2.9m. It will now focus its investments on higher-margin owned IP (such as its Slingo brand) delivered through its own platform. We have adjusted our forecasts to reflect the disposals and our revised view of the timing of additional Slingo game launches. As a result, we have reduced our 2016e EBITDA forecast from £5.8m to £1.4m, followed by a significant ramp up in 2017e to £12m.
Focus on owned IP delivered through own platform
With the completion of its own “Grizzly” mobile platform, the development of in-house brands such as Spin Genie, the July 2015 purchase of the Slingo brand and now the disposal of its third-party skins, Gaming Realms has shifted the balance of the company towards an increasing level of self-sufficiency with respect to control of its own technological and brand IP. We believe the greater KPIs achieved on its proprietary platform support the company’s view that it should be better placed to achieve a higher return on its investment as a result.
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