Online bingo operator JPJ, owner of Jackpotjoy, has seen gaming revenue grow year-on-year, following a financial report for the six months ending June 30, 2019.
Gaming revenue for the company has risen 14 per cent year-on-year, driven by growth at Vera&John.
Adjusted EBITDA increased two per cent year-on-year due to revenue growth. This was partially offset by expected impact from higher UK gaming taxes.
However, adjusted net income decreased by two per cent year-on-year due to higher depreciation on purchased tangible assets and higher amortisation on internally generated intangible assets.
Neil Goulden, executive chairman, said: "I'm pleased to report that the group has delivered another good quarter of revenue growth, alongside the expected impact of higher gaming taxes on EBITDA. Group revenues were up 14 per cent in H1 2019, driven by a strong performance in Vera&John, while adjusted EBITDA increased two per cent, notwithstanding the increased rate of POC tax in the UK to 21 per cent from 15 per cent and effective as of 1 April 2019, as well as the introduction of POC tax in Sweden at a rate of 18 per cent from 1 January 2019.
"On 13 June 2019, we announced our intention to acquire Gamesys, which represents a transformational step in the group's growth and one which will provide significant benefits for shareholders, employees and customers. We expect the Gamesys acquisition to deliver double digit earnings accretion in the first full financial year of ownership and our employees will benefit from the combination of two companies with a strong commitment to responsible gaming, with a scale to further enhance our product development and technology capabilities.
"Our customers will also now have an even greater choice of major brands and different games, creating a truly leading UK and international operator. We expect the Gamesys acquisition to complete during Q3 2019 and we will update the market further in due course."
