Bingo-led operator JPJ Group has released its year-end figures for 2018, with gaming revenue up 10 per cent thanks to strong organic growth within its Vera&John brand that makes up close to a third of the company’s revenue.

JPJ Group

Overall, adjusted EBITDA was up nine per cent, year-on-year, with adjusted net income rising by 27 per cent, assisted by a £10.4m decrease in interest expense.

Operating cash flow of £105.9m represented a five per cent increase and adjusted net debt reduced by £85.2m year-on-year, with the adjusted net leverage ratio of 2.68x down from 3.57m.

The Jackpotjoy segment, which makes up 68 per cent of group revenue, saw a decrease of four per cent in adjusted EBITDA, attributed to a decline Mandalay and Jackpotjoy UK brands. Earlier this month, JPJ Group completed the sale of Mandalay to a subsidiary of 888 Holdings for £18m.

The Vera&John segment, 32 per cent of group revenue, saw a full-year gaming revenue growth of 42 per cent, reflecting strong organic growth in the segment which operates on the group’s proprietary platform.

JPJ Group CEO Neil Goulden said: "I am pleased with the progress we have made in 2018 as JPJ Group continued to deliver on its strategy. We have reported record revenue and adjusted EBITDA, growing 10 per cent and nine per cent, respectively, demonstrating the benefits of our diversified geographic footprint. Our continued strong organic cashflow generation has also enabled us to deleverage further, with net debt/EBITDA now at 2.68x. The board is comfortable retaining the current significant cash on the balance sheet given the optionality which this confers.

“Trading over the first two months of the (current) financial year has been strong with double digit growth in revenues to the end of February and the group is trading in line with management's expectations for FY 2019.

“Overall, we look forward to continued progress in our international operations and to taking advantage of growth opportunities in the UK market during the second half of 2019, as we pass the anniversary of the introduction of enhanced responsible gambling measures.”