JPJ Group navigates UK headwinds as firm prepares for Gamesys enlargement

The governance of London-listed JPJ Group Plc maintains confidence in the firm’s future prospects, as the company moves to fully integrate operating partner Gamesys, enlarging its commercial capacity.

Publishing its interim H1 2019 trading update (period ending 30 June), JPJ records a 14% increase in corporate revenues to £170 million (H12018: £149 million), driven by the ‘strong organic growth’ of its European online casino property Vera&John.

UK Flagship brand Jackpotjoy continues to adjust to UK and Swedish market enhanced responsibility measures and higher operating taxes, which sees the division record a 5.7% revenue decline to £98 million (H12018: £104m).

Despite facing UK & Swedish headwinds, JPJ governance maintains confidence highlighting the firm’s improved KPI metrics, with average active customers per month hitting 245,000 and average monthly customer gaming revenues increasing by 5% to £108.

Closing its H1 2019 interim update, JPJ governance reports a 2% increase in adjusted EBITDA to £54 million (H12018: £53m), as the online gambling group declares a period net income of £5 million reversing 2018 losses of £100,000.

Following a solid H1 trading period, JPJ governance maintains confidence in maintaining its full-year outlook as the firm incorporates  Gamesys assets outright, a unit which recorded gaming revenues of £96 million combined with a further EBITDA £30 million.

Neil Goulden – JPJ Group

Updating investors, JPJ Group Executive Chairman Neil Goulden states:  “I’m pleased to report that the Group has delivered another good quarter of revenue growth, alongside the expected impact of higher gaming taxes on EBITDA. Group revenues were up 14% in H1 2019, driven by a strong performance in Vera&John, while adjusted EBITDA2 increased 2%, notwithstanding the increased rate of POC tax in the UK to 21% from 15% and effective as of 1 April 2019, as well as the introduction of POC tax in Sweden at a rate of 18% from 1 January 2019. “

“On 13 June 2019, we announced our intention to acquire Gamesys which represents a transformational step in the Group’s growth and one which will provide significant benefits for shareholders, employees and customers. We expect the Gamesys acquisition to deliver double-digit earnings accretion in the first full financial year of ownership and our employees will benefit from the combination of two companies with a strong commitment to responsible gaming, with a scale to further enhance our product development and technology capabilities. Our customers will also now have an even greater choice of major brands and different games, creating a truly leading UK and international operator. We expect the Gamesys acquisition to complete during Q3 2019 and we will update the market further in due course”.

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