Gamesys Group has started life with a solid third quarter showing, as the rebranded online bingo-led operator JPJ Group continues to praise the impacts of its £490m Gamesys acquisition.
Now offering bingo and casino games via jackpotjoy.com, virgingames.com, botemania.es, heartbingo.co.uk, monopolycasino.com and verajohn.com, the latter, which officially closed its UK virtual doors in September, saw high group international markets reflected by an increase in gaming revenue of 57 per cent.
Gaming revenue group-wide rose 23 per cent year-on-year, 20 per cent excluding the previously detailed purchase, to £92.4m (2018: £75.2m) primarily due to high organic growth in markets outside the UK as well as the inclusion four days of trading from the Gamesys brands that contributed £2.3m.
Adjusted EBITDA decreased eight per cent year-on-year to 25.5m (2018: £27.6m) principally driven by the impact from higher UK gaming taxes introduced during the period, which saw net income reach £3.4m, down 20 per cent from £7.6m.
Neil Goulden, executive chairman of the Gamesys Group, explained: “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 per cent 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 Jackpotjoy UK.
“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.”
Providing an outlook for the period ahead, strong trading in the third quarter has supported prior management confidence in the full-year out-turn.
An expectation has been stressed that Jackpotjoy UK would return to growth in H2 2019, confirmed in Q3 numbers and across major international markets, with the acquired Gamesys brands also set to deliver high growth.
“It is a very exciting time for all involved at Gamesys Group plc,” commented Lee Fenton, chief executive officer of the group.
“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.
“Q3 has seen excellent growth across the acquired Gamesys brands, an outstanding performance at Vera&John and a return to growth at Jackpotjoy UK which helps underpin our confidence in the outlook.”