Gamesys Group suspends UK advertising as revenue rises 19%
Operator implements marketing suspension during coronavirus as Asia and UK drives Q1 growth
Gamesys Group has suspended UK advertising amid the coronavirus pandemic after reporting a Q1 2020 year-on-year revenue rise of 19%.
The London-listed operator reported revenue of £155.3m and attributed the rise to strong growth in its Asia-focused brands including Vera&John, as well as solid performance in UK brands Jackpotjoy, Heart and Virgin.
At a European level, the group confirmed its operations in Spain and Germany continued to “make progress”, with Q1 2020 regional revenue hampered by weak returns in the Swedish market.
Gamesys also revealed double-digit growth in its US operations, driven by its partnership with the Tropicana casino in New Jersey.
Gamesys Group is the first UK operator to announce it will suspend all untargeted digital marketing, as well as ceasing all TV and radio advertising in the UK, until the coronavirus lockdown ends.
“During this period, we will continue to advertise our brands online although we will also be suspending direct-mail marketing and untargeted digital advertising,” the firm told investors.
“Across our global footprint, we will continue to pursue an intensified responsible gambling strategy to ensure our customers remain protected.”
Addressing Covid-19 social restrictions, Gamesys revealed a 45% increase in players choosing to set up deposit limits since the lockdown began.
In addition, the operator confirmed a 38% player engagement increase in its digital chat rooms across bingo-led sites and a 10% rise in non-wagering sessions on UK sites during the period.
Gamesys Group CEO Lee Fenton
Gamesys Group CEO Lee Fenton said he was proud of the measures the firm had taken to ensure the health and wellbeing of its employees during the coronavirus pandemic.
“The Group is in a strong position given our operational control of a portfolio of well-renowned brands and complete ownership of our technology platforms,” Fenton said.
“We are confident that the business is capable of meeting the challenges in the current environment and continuing to thrive in the long term,” he added.
As part of its new UK advertising policy, Gamesys has temporarily removed all Jackpotjoy branding from its sponsorship of the ITV show Loose Women, allowing the Women’s Aid charity to take up the sponsorship.
The operator has also donated £200,000 to Women’s Aid, money which is being used to increase the charity’s live chat capacity.