Jackpotjoy enjoys 15% revenue growth in maiden London results
Shares jump 5% as group’s three core brands all report a year-on-year revenue increase
Jackpotjoy group (JPJ) has delivered a 15% rise in 2016 revenues to £269m in the company’s first financial report since relocating to London.
The bingo-led firm reported growth across its three core brands, with Jackpotjoy revenues up 17%, Vera&John up 20% and Mandalay growing at 1%.
The group, which relisted on the London Stock Exchange in January, also reported a 19% jump in adjusted EBITDA to £102.2m.
Andrew McIver, group CEO, said: “The past financial year has been a turbulent one for the group, so I am pleased to be reporting strong results today, which clearly demonstrate the strength of our brands across the portfolio.
“I am also pleased to say that on a constant currency basis we achieved the high end of our market guidance. This is something I am particularly proud of given the strategic initiatives that were ongoing throughout 2016, and clearly demonstrates our ability to develop and grow our brands whilst also undertaking significant corporate-level activities.
“Looking ahead to 2017 I am confident that our strong portfolio of brands will continue to deliver strong organic growth and this is further evidenced by the 10% revenue growth year-on-year we are forecasting for Q1 2017.”
However, management also warned of thinning EBITDA margins, as the firm faces the introduction of UK point of consumption (PoC) tax on bonuses in August, and an increasing proportion of revenues from the “high-growth and relatively high-tax” Spanish market.
Victoria Pease, an analyst at Edison Investment Research, said the group was still an “attractive turn-around candidate”.
“JPJ’s maiden London-listed results demonstrated the benefits of leading market-brands in a profitable and cash generative business,” said Pease.
“A trading multiple of 6.9x 2017 EV/EBITDA is far below the sector and, as JPJ continues to demonstrate its market dominance in bingo-led gaming, the stock appears attractive as a turn-around candidate.”
Jackpotjoy shares jumped 5% to 556p in early trading.