Gamesys Group, formerly known as JPJ Group, has reported an increase in gaming revenue of 23 per cent year-on-year to £92.4m for the third quarter of 2019 (£75.2m), thanks to high organic growth in markets outside of the UK.
The rise in revenue stood at 20 per cent excluding the acquisition of Gamesys – whose brands include Virgin Games, Virgin Casino, Heart Bingo and Monopoly Casino – and comprises £2.3m in four days’ trading from those brands.
Adjusted EBITDA decreased eight per cent year-on-year, mainly due to the impact from higher UK gaming taxes introduced in the period, with adjusted net income falling by 20 per cent, reflecting the reduction in EBITDA.
Gamesys Group extended its existing debt facilities by £173.6m to part-fund the cash component of the acquisition of Gamesys (Holdings) of £237.3m (net of gains from hedging). Adjusted net debt was £484.7m and adjusted net leverage ratio was 3.02x, increased from 2.47x at the end of June.
With the continued high growth of international revenues at Vera&John and a set of strong results, the Gamesys board of directors is confident on the outlook for the rest of the financial year.
Executive chairman Neil Goulden 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 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.”
