Online bingo operator Jackpotjoy Group performed in line with expectations during the opening quarter of the year, with gaming revenue up 13 per cent year-on-year to £80.7m.
The double-digit revenue growth, within which the Vera&John brand grew by 35 per cent, paired with a three per cent increase in adjusted net income of £21.4m following debt refinancing in the previous quarter.
There was a seven per cent decrease in EBITDA to £27.1m, which the group stated was principally due to increased marketing costs and the new point of consumption tax to gross gaming revenue in the UK during Q4 2017.
Strong ongoing cash generation resulted in operating cash flow of £24.4m, an increase of five per cent.
“Trading in the first quarter has been in line with expectations and we anticipate that this momentum will be maintained during the course of FY18,” the company stated.
“The Botemania earn-out period finished in March 2018 and we are due to make the final earn-out payment to the Gamesys group in June 2018. We expect to meet this payment comfortably from existing cash resources and to rapidly de-leverage thereafter; reducing net debt remains a key strategic target for the Group.
“Significant growth opportunities continue to exist in the UK and other global online gaming markets, and we are confident that we are well-placed to take advantage of this backdrop and deliver value to shareholders.”
