Gamesys expects Q3 results to beat estimates

Gaming technology firm Gamesys reported a "strong performance" in the third quarter on Tuesday, with results for the period now set to come in ahead of expectations.

Gamesys said total revenues had increased 31% to £190.0m on a proforma basis, reflecting the growth in the company's active customer base.

Revenues in percentage terms increased by "high double-digits" in Asia, while the group added that it had turned in another "very solid performance" in the UK. In Europe, Spain continued to make progress and the US maintained "good momentum" with "healthy double-digit" top-line growth.

The FTSE 250-listed firm also highlighted that it had made "a good start" to the fourth-quarter and said trends were "broadly in line" with those seen in the first three quarters of the year.

AJ Bell's Russ Mould said: "Betting and gaming has been one of the few industries to get a boost from lockdowns the world over, and Gamesys is active in not just the UK but Europe, Asia and Japan as well. It has no shops and no exposure to sports betting, offering online slots, casinos and bingo instead, and management takes regular to pains to emphasise how hard Gamesys works to promote responsible gambling and tackle problem betting.

“This is the right approach from an ethical and regulatory perspective, especially as a major review of the UK’s 2005 Gambling Act is in the pipeline and the prospect of tighter rules and higher taxes cannot be entirely ruled out. If regulation remains one potential risk, then investors also need to remember Gamesys’ acquisitive history. There is always the chance of more deals, especially as the trend toward deregulation in the USA contrasts so strongly with many markets worldwide, where betting and gaming face ever-greater scrutiny. The US could therefore provide a tempting target for Gamesys and shareholders would need to assess any potential purchase in light of the valuation paid and the returns on offer.”

As of 0845 BST, Gamesys shares were up 2.13% at 1,340.0p.