Gaming Realms plc

Good afternoon and welcome to the Gaming Realms PLC investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand over to Mark Siegel, CEO. Good afternoon, sir.

Thank you. Firstly, thank you everyone for dialling in and we'd like to take you through our FY25 results presentation. So you have myself, CEO, co-founder of Gaming Realms and Jeff, the CFO on the presentation today. I just thought I'd take you through sort of what we do, and how we are generating this great growth we've seen in the last few years. So we're a developer and licensor of casino games for the regulated iGaming market, international market that is, and the majority of our revenue and our biggest IP comes through Slinger, which we acquired in 2015. We actually brought it to the iGaming market. Previously it existed in the lottery market, the land-based casino market, social gaming market, etc. So very, very big, important IP. We monetize mostly through real money. We have a platform which hosts all of our games and connects to all the casinos that we work with around the world. And there's great volume in that, both in terms of transactions and players and partners and number of games. And also we operate a social publishing, social casino business, which essentially is a way of monetizing our Stinger games in another market. The way we are generating the business comes through three areas. The majority and the core parts of our business is the content licensing business. We have built up a portfolio of over 80 Slingo games, which are very unique in both format and the IP. And the way we are paid is we share in the operator success. Essentially, the more revenue that our games produce for the operators, we earn a percentage of that. It's very diverse now, this stream. We work with over 200 partners. We're in 30-odd regulated markets as well. We have a portfolio probably close to 100 games in total. As thing is such an important part ip and popular ip we also are licensing this into other adjacent markets where we've not developed the project so you can buy slingo scratch cards in the lottery market in the us for example and we also have licensed slingo to social slot providers as well as online scratch cards and other areas as well and then finally we have our social gaming business which is almost like a Candy Crush model where we get in-app purchases and some advertising revenue. And what I will note for the brand licensing is that this revenue stream is as we do deals and it's not necessarily as recurring, say, as the content licensing side, albeit we're often renewing all these deals and they do work in a cycle. But in the year we managed to renew our lottery deal as well as the social casino deal as well. So, Stingo is popular really for a few areas, and one of it is the brand itself, hence why we're able to license into all these other markets and have great success through our games. But the other is it's become a category in itself, I don't know if you can quite see here, but these are some operators we work with in North America. And you'll be able to see that in Drakkings and BetMGM, we actually have Slingo sections on the site. So they really stand out in the real estate of a mobile phone. Our Slingo content can be stand out and promoted. The one we've found all there is a big promotion they've done around our games. And they also have a place on their site for all Slingo content. And then on the right is a lottery we work with in Canada, where, again, they promote Slingo separately. And so we're able to... What we've done is we've managed to take Slingo to the iGaming market and then make it a category which stands alongside slot games, table games, bingo, etc. And, you know, we always... markets ourselves and are a premium supplier of games. So Slingo is different and premium and we work with some of the top operators all over the world. The notable ones that we've gone live with during the period is BCLC, which is the lottery in British Columbia in Canada. I've gone live with Hollywood Bets in South Africa as well. We try and work with the biggest partners wherever we are, whichever markets we're in. and we're growing and so in the year we went live in delaware in the us us being our largest market and um also went live with british columbia in canada We've gone live with Brazil during the year and Peru since the year end as well. Brazil in particular is a new regulated market. And so we're navigating that, slowly rolling out our games, going live with new partners. We went live in South Africa right at the end of the year. So we'll start to see the benefits of that into 2026 and beyond. Again, as we roll out with more partners and more partners, games as well. And we've gone live in a few more of the regulated markets in Africa. And again, we're at the beginning of our sort of journey in these new, really exciting markets for us. And then into Europe as well, there are more markets which are going to regulate in time. I think it's Ireland is one, for example, which has said it's going through a regulation period where it says, at the moment, these are new markets we'll be able to launch our content and essentially open up new revenue streams for our games. And so I'll hand over to Jeff now to run through the results for the year.

Thank you, Mark. I'll take you through our 2025 financial performance and the key drivers behind the numbers. So I'll start here with some of our key metrics. So at headline level, as you can see at the top of the slide, we grew our revenue by 10% to 31.4 million over 2024, and we grew adjusted EBITDA 15% up to 15 million. reflecting the continued scale and strength of the model. As the bottom of the slide shows, North America continues to be a key driver behind this growth, so our growth in the regulated US markets was 23%, and in Canada was 31%, both in content currency, and the region now represents 63% of content licensing revenue. And this financial performance is underpinned by what we're seeing operationally. So we've continued to grow the number of operators that we distribute to. So with the 40 new partners that we launched within 2025, our distribution base now exceeds 250 partners. We're continuing to go live into new markets with the seven markets that we entered during 2025, including Brazil, South Africa and Switzerland. And then the four markets that we've gone live with in the first quarter of 2026. That brings us to 32 markets that we currently distribute our content to. We also increased the number of games that we've launched across our core Slingo portfolio, our bespoke titles, and the third-party titles that we distribute. And player engagement across our portfolio was also up. So we saw a 22% increase in the number of unique players compared with 2024. And encouragingly, we've seen this momentum continue into 2026 so far. So our content licensing revenues in January and February 2026 We're 8% ahead of the same months in 2025 or 10% on a constant currency basis. So now turning to the financials, this slide shows our summary income statement for the year. Revenue growth was again driven by our core licensing business where revenues grew 13% year on year. While we reported growth in our content licensing business of 3%, that would have been 5% under constant exchange rates, with currencies being a headwind for us during the year, particularly with the US dollar. And as we'll come on to in a couple of slides time, that growth was also impacted by our UK revenues following the introduction of staking limits in April. And then just a few other points to highlight from this slide. We continue to operate a high margin model, which is one of the bits that gives us the operational leverage. So variable costs represent 20% of revenue. Our admin expenses increased as expected, reflecting the targeted investment in our development team for our future growth. And importantly, we maintain strong cash conversion. with nine and a half million of underlying cash inflow, which represents 63% of adjusted EBITDA. So let me now turn to cash generation and capital allocation. This slide shows how we've deployed that cash generated during the year. So we took a balanced approach between returning capital to shareholders and investing in the future growth of the business. During the year, we returned 2.8 million to shareholders via share buybacks as part of an overall 6 million programme that was announced. The remaining 3.2 million of that programme was completed in the first quarter of 2026 alongside the announcement of a further 5 million buyback. We also increased our capital investment by 2.5 million to grow and scale our content capabilities. the benefit of which will come in 2026 and beyond, and we'll discuss this later in the presentation. And even after these items, we still reported 4.3 million of net cash increase during the year. So overall, we're growing, we're funding that growth ourselves, and we're still returning capital to shareholders at the same time. And that leaves us with 17.8 million of cash at the year end, giving us significant flexibility moving forward. so this is staying with cash this this is just another slide that shows a slightly different way of how that 4.3 million of reported cash increase came about it starts with the 8.8 million of profit before tax on the left hand side and kind of shows the bridging steps to go from that to the 4.3 million on the far right hand side the main movements here are the 8.2 million of capital investment and the 2.8 million return to shareholders that we spoke about on the previous slide alongside the non-cash charges, the amortization charge, depreciation, and the share-based payment charge, and then the tax paid during the year on the right-hand side. So we delivered $4.3 million of free cash flows even after the increased investment and shareholder returns and ended the year with $17.8 million of cash. Now, what really underpins this is the strength of the underlying model, which this slide summarizes. In very simple terms, what this is saying is as we grow our distribution by going live with more partners and entering more markets, as we launch more games and as those games gain engagement, that drives higher game play across our portfolio, higher bets placed and ultimately revenue for the business. And I'll show on this next slide how that translates into key metrics. So this slide shows the progress we've made since launching the licensing business in 2017. The top two charts here show the cumulative growth in operators and the number of games with over 250 partners and 107 games live by the end of 2025. The bottom two charts show the growth in bets and revenue across that same time period. And I would say that the bottom two charts are both in period metrics, whereas the top two are on a cumulative basis. So looking at the bottom left chart, that shows that in 2025 alone, over £7.4 billion worth of bets was placed across our portfolio, which really shows the scale that the platform is now operating at. And as our agreements are performance based, that growth in bets feeds through to increased revenue, as shown in the bottom right slide. And as I mentioned a few slides back, that momentum has continued into 2026. So we're looking forward to seeing these charts continue to progress over the coming periods. So I'll now break down that growth. by geography. So starting with the US on the left-hand side, revenue grew by 19% or 23% in constant currency. That growth has come about from a number of factors. We saw strong underlying performance and growth in all of our existing markets where every state or every existing state grew at double digits over 2024. We launched some very strong US-focused titles during the year, which our US players really engaged with. We also launched another tranche of bespoke content for our largest US partners. And we went live in Delaware during the year, the sixth state that we distribute our content to, and had the full-year impact of going live in West Virginia during 2024. But I would just say West Virginia and Delaware are very much smaller revenue territories for us. So moving to the right, the UK revenue declined by 10% during the year compared with 2024, reflecting the impact of staking limits introduced in April. And we'll come on to a case study on the next slide showing how we've mitigated and grown the UK markets subsequently. Canada, moving along to the right again, delivered strong growth up 26% or 31% in constant currency. Growth here was supported by going live in British Columbia during the second quarter of 2025, launching with six new partners in Ontario and also seeing strong organic growth for the existing partners we were live there with. And in Italy, we also saw strong growth, albeit from a smaller base there, growing 31%. Towards the end of 2024, we launched our first Italian first title, where we licensed in a top Italian slot brand and built a single game around. And that game has really driven engagement in the market. And the game actually did fantastically well globally, not just in Italy. And then finally, the rest of the world on the far right hand side, the rest of the world declined year on year, mainly due to two markets, Portugal and the Netherlands. In the Netherlands, the recent regulatory changes, say the higher taxes, the deposit limits and the marketing restrictions, have led to a material contraction in the regulated market size, which we are downstream from. And in Portugal, while we are live, the regulations in that market mean we can only have a very limited number of titles. So without that regular flow of new content, it's very difficult to maintain or grow revenues there. So I'm going to hand back to Mark just to talk a little bit about our UK recovery.