Gaming developer Gaming Realms has attributed a portion of its 2018 success to the sale of various affiliate marketing and B2C real-money gaming assets.
Gaming Realms, which sold its affiliate marketing business in March 2018, reported a profit of £929,305 for the twelve months through to December 31, 2018.
The sale of the affiliate marketing division was as a result of a ‘tough regulatory environment’, with the developer also opting to sell its B2C real money gaming business in July 2018 for the same reason.
The developer has expressed hope of completing any remaining transactions relating to the real money gaming business in the coming months, after which it will focus more on the development and licensing of games for third-party real money and social gaming operators.
Patrick Southon, chief executive of Gaming Realms, commented: “We began our licensing business in 2017 as part of a strategy to fully capitalise on the strength of our games development operations.
“In a period of 24 months, we have developed, licensed and launched 34 games via major gaming partners such as GVC and 888 and captured over 3.5 per cent market share in New Jersey.
“As a result, and post the imminent completion of the sale of the remaining B2C RMG business, we are looking forward to focusing solely on increasing the cadence of game development and licensing delivery as more B2B partners come online.”
Throughout 2019, the developer’s continuing revenue was reported to be down from £7.6m to £6.2m, following a decline in social publishing revenue.
Licensing revenue did see a jump however, rocketing by 167 per cent from £800,000 in 2017 to £2.2m, following the addition of 17 new partnerships. Marketing expenses were cut from £2.3m to £665,363, administrative costs from £7.5m to £4.9m, and operating expenses from £1.5m to £901,807.