Gamesys returns to profitability as revenues rise 24.4% in FY18
Company continues to profit from JPJ operating agreement, while revenues from B2C turnkey operations increases 36.8%
Gamesys’ group revenues increased 24.4% during the company’s 2018 financial year following strong growth from the company’s B2C turnkey operations, according to its latest accounts.
Detailing its financial return for the period ending 30 March 2018, the company revealed group revenues of £287.2m, surpassing the £230.6m in revenues accrued during the prior financial year.
Revenues were buoyed by a £94.2m payment made by JPJ Group as part of the sale of Jackpotjoy B2B assets, first agreed in 2015.
As part of an operating agreement, which was amended and extended in 2016, JPJ agreed to pay Gamesys £24m over a three-year period, resulting in an additional income payment of £12m being received during the 2018 financial year.
Gross company profits rose from a £6.9m loss in 2017 to a £23.9m profit, a rise of 446.3%. Company EBITDA also rose during the year by 1696% from a 2017 loss of £2.5m to a positive £31m in FY 2018.
Revenues from the groups B2C turnkey operations, which includes the Virgin and Heart brands grew by 36.8% during FY2018 to £160.5m. The acquisition of the Live Score business, concluded at the end of 2017, generated an additional £3m in revenue for the Gamesys group.
Analysts Regulus Partners said Gamesys continues to “significantly outperform” the underlying UK market and its rate of growth means that this outperformance is “highly likely” to continue.
Regulus cite three factors as markers for this: a focus on the mass market segment, a “strong and well differentiated product” and its UK base as key factors in its success.
Paul Leyland, chief analyst at Regulus, said: “[These factors allow] Gamesys to grow the segment as well as fight over market share: a significant driver of long-term value that only a small handful of companies seem capable of doing.”