“Revenue growth is exceeding our expectations and we can see the potential for profit forecast upgrades later in the year,” the broker said.
Sales rose by 66% in the six months to June, but licensing income jumped 104%, which has accelerated in July and August to 140%, said the broker.
Underlying interim profits (EBITDA) were £1.2mln, up from a small loss a year earlier while licensing profit was up to £1.7mln from £0.7mln.
How much of the growth relates to COVID-19-related lockdowns is difficult to gauge added the broker, though it expects some of the shift to be permanent.
Gaming Realms also launches in the US states of Pennsylvania and Michigan in 2021 and this can potentially transform the numbers, said Peel Hunt.
Other territories such as Italy and Spain have yet to be tapped, while there is the capacity to upgrade and launch new game content.
Regulatory tightening remains a concern but ‘buy’ with a 30p target price is the broker’s investment view.
Shares eased 1.8% to 21.4p.