Gamesys reports 25% rise in annual profits
Operator's annual financial report for the year ended 31 March 2013 reveals it paid a total of £9m for Virgin Games business
London-based operator Gamesys paid a total of £9m in order to acquire Virgin Games in a year which saw company’s profits grow by 25% to £58m, according to the Group’s annual accounts filed with Companies House.
The report, which details the 12-month period to 31 March 2013, also reveals the December 2012 purchase from Virgin Enterprises resulted in reorganisational costs of more than £600,000.
Following the deal, the price of which was previously undisclosed, Gamesys removed all content from the likes of Microgaming, Net Entertainment, Cryptologic and Playtech, leaving 24 games provided by IGT as well as 24 of Gamesys’ proprietary titles.
The operator has since developed a free-to-play poker product and is developing its first real-money variant under the Virgin Games brand for the European and re-regulated US market, assisted by a recently opened Canadian base.
According to the accounts, Gamesys’ profit before tax increased by 25% from £46m in 2011-12 to £58m in 2012-13, while turnover was up by 27% to £181.5m across the period.
Wagering rose 26% year-on-year in both quantity and value with the number of wagers up from 3.6bn to 4.5bn and stakes of £4.4bn from £3.5bn.
Average staff numbers grew by 46% from 444 to 647 which in turn saw Group wages and salaries increase by 45% to £27.7m. The highest paid director received £410,364, up from the previous year’s top remuneration package of £364,542.
The accounts also detailed the cost of a new operating lease, which commenced on 24 May 2013, which committed the business to an annual payment of £594,748 for a period of two to five years.
The Group, led by managing director Noel Hayden (pictured), enjoyed an eventful 12 months. In addition to the Virgin Games deal, in August 2012 the Group became the first entity in the world to launch real money gambling games on Facebook while it also released a gambling product in Sweden.
In an account note, Gamesys said it is “currently reviewing opportunities in new markets in particular the US”. At present it operates an online casino in New Jersey following a tie-up with Tropicana Casino and Resort.