Gaming Realms Plc (LON:GMR) was spotlighted in an interview with Gervais Williams, Co-Fund Manager of The Diverse Income Trust plc (LON:DIVI) to uncover Gervais’s thoughts on the rationale and prospects of some of his investments in the DIVI portfolio.
DirectorsTalk asked:
Gaming Realms Plc (LON:GMR) announced record annual results at the end of March. How do you see their content licensing model supporting long-term growth as they expand into new markets like Brazil and South Africa?
Gervais Williams commented:
Slingo is just one of the features of investing in some of these casino games online and they own that branding. Many of these companies just want a range of different games and Slingo has been very popular, they keep bringing new games and they keep getting new operators. As I mentioned earlier, with Plus500, there’s more licenses going in the US now so we’re seeing them expanding rapidly.
What’s pleasing about that company is that they’ve got very strong customer base, they’re generating surplus cash but more importantly, they’ve been expanding rapidly and that cash generation has been moving on. I think they’re getting a bit more recognition, the market cap is now becoming a bit more visible to some of the institutional investors and other small cap investors so we’re just beginning to see their share price moving on.
The risk-award ratio looks very attractive. We think they can pay not just dividends, but quite rapidly growing dividends and for that reason, we think it’s a perfect holding for the Diverse Income Trust.
Gaming Realms plc develops, publishes and licenses next-generation mobile gaming content. Their market-leading mobile technology powers content distribution and monetization across real money and social gaming markets.
