Online Bingo-Led Operator JPJ Group on the Up with Revenue Growth

It’s a solid third-quarter start for Gamesys Group after JPJ Group splashed out a whopping £490m for the acquisition of the online bingo-led operator. Six online brands offering both bingo and casino games saw an increase in gaming revenue for the operator of 57% and this was thanks to Jackpot Joy, Virgin Games, Heart Bingo, Monopoly Casino, Botemania and Vera & John, despite the latter closing its doors to the UK market in September.

Year-on-year revenue for the group rose 23%, however, an adjusted EBITDA resulted in a decline of 8% year-on-year, going from £27.6m in 2018 to £25.5m in which analysts believe is the result of higher UK gaming taxes introduced in the same period. Net income for the same period was down 20% to £3.4m from £7.6m.

Strong Brands Strong Performance

Neil Goulden, executive chairman of the Gamesys Group said: “I am pleased to report that the group has delivered another stand-out quarter of revenue growth alongside the expected EBITDA impact from higher gaming taxes. Pro-forma revenues were up 20 percent in Q3 2019, principally due to the exceptional performance of Vera & John in its international footprint and the high growth in the acquired Gamesys brands, as well as a return to revenue growth in Jackpot Joy.”

Goulden continued: “During the quarter, the group successfully completed the Gamesys acquisition, creating a leading UK and international operator and offering customers an even greater choice of major brands and different games. It is also worth noting that from 2020 our Q1 and Q3 updates will be shorter form trading updates in line with general UK practice. This reflects the fact that the group’s reporting requirements in Canada will no longer oblige us to report consolidated financial statements for the respective three and nine month periods.”

Lee Fenton, chief executive officer of the group added: “It is a very exciting time for all involved at Gamesys Group plc. The successful combination of two leading and complementary businesses with a unique technology offering, a strong pool of talent and an enhanced portfolio of brands, ensures the group is in a strong position to take advantage of future growth possibilities and we are already reaping the benefits in terms of operating performance.”

Fenton concluded with: “Q3 has seen excellent growth across the acquired Gamesys brands, outstanding performance at Vera & John and a return to growth at Jackpot Joy UK which helps underpin our confidence in the outlook.”

In September 2019, JPJ Group acquired a number of assets from its long-term partner Gamesys for the sum of £490m and instantly began trading on the London Stock Exchange under their new name – Gamesys Group. The operator specializes in a wide choice of both bingo and casino games which can be accessed across all devices with no downloads needed.