JPJ revenues up 14% on new customer acquisitions
Q3 revenues hit £75m although profits held back by recent TV ad campaign
Jackpotjoy plc (JPJ) has reported a 14% rise in Q3 revenues to £75.4m with growth driven by strong performances from its Jackpotjoy and Vera&John brands.
Adjusted EBITDA improved by a more muted 4% to £26.7m, impacted by a planned increase in marketing costs, notably the new TV ad campaign featuring Paddy McGuinness.
Of JPJ’s three core business units, Jackpotjoy, which accounts for 69% of group revenue, climbed 12%, while Vera&John grew 21%cc.
Mandalay, which accounts for 7% of group revenue, saw revenues fall 8% on the back of lower marketing spend.
The wider group’s growth was largely fuelled by new customers, with active customers up 13% to 251,000, in the year to 30 September 2017.
Average revenue per user climbed just 2%.
“The third quarter has seen a continuation in the strong underlying momentum that we saw during the first six months of 2017,” said executive chairman Neil Goulden, who will take up some of the responsibilities of outgoing CEO Andy McIver.
“I am very proud of the new integrated advertising campaign for our Jackpotjoy brand, which launched in the UK in mid-September, and early signs indicate that the campaign is helping to reinforce our market leadership position in online bingo in the UK.
“Against a positive operational backdrop and given the new management structure in place, I have full confidence that Jackpotjoy plc will continue to go from strength to strength and generate attractive returns for our shareholders.”
JPJ shares dipped 1% to 846p in early trading.