JPJ revenues up 14% as focus turns to debt reduction
Executive chairman Neil Goulden says debt reduction will enable the group to meet earn-out obligations and pay last instalment of Gamesys Botemania acquisition
Jackpotjoy Group (JPJ) this morning reported a 14% year-on-year increase in 2017 revenues to £304.6m, powered by double-digit growth in both its Jackpotjoy and Vera&John brands.
Jackpotjoy brand revenues grew 12% to £211.3m during the 12-month period, with Vera&John revenues up 13% year-on-year to £18m.
However, Mandalay revenues, which account for 7% of the group, dropped 7% on lower marketing spend.
Despite the wider double-digit growth, revenues were offset by a 27% increase in gaming tax attributed to the implementation of the POC tax on bonuses in the UK in Q4 2017.
Executive chairman for the group, Neil Goulden said: “Our primary goals at the beginning of 2017 were to continue to execute operationally, to successfully list in London, to meet the earn-out obligations and to refinance our debt.
“Having successfully addressed each of these, we remain focused on the delivery of operational progress and revenue growth and also to deleverage as we seek to position the Group with a capital structure more akin to a typical UK-quoted online gaming company,” he added.
Goulden said the group would now focus on integrating the people and operations acquired as part of the Botemania brand purchased from Gamesys.
The London-listed operator said it had made a targeted effort to reduce its net debt during the period by £20.8m to £387.3m to meet its earn-out obligations to Gamesys.
In an analyst note, Regulus Partners said JPJ had reported a resilient end to 2017 despite very tough UK competition.
“Jackpotjoy demonstrates the benefits of a multi-brand and multi-geography approach, with strength in Starspins and Spain offsetting maturity from JPJ UK and Mandalay underperformance,” the note said.