Overseas markets lead growth at JPJ Group

Online bingo-led gaming operator JPJ Group issued its third quarter results on Wednesday, reporting an 8% improvement in gaming revenue to £77.8m and a swing to IFRS net income from continuing operations of £7.4m, from a loss of £8.2m last year.

The London-listed firm said its adjusted EBITDA for the three months ended 30 September was 13% higher at £28.8m, with adjusted net income rising 36% to £23.3m.

Operating cash flow was 1% higher at £33m.

On the operational front, JPJ said it saw ongoing improvement in its core key performance indicators year-on-year, with its average active customers per month growing to 257,929 in the 12 months to 30 September - an increase of 3% year-on-year.

Average real money gaming revenue per month was up to £25.4m, representing an increase of 12% year-on-year, and monthly real money gaming revenue per average active customer was up 10% to £99.

“We are pleased with the quarterly performance of JPJ Group given reported gaming revenue growth of 8% and an uplift in adjusted EBITDA of 13%,” said executive chairman Neil Goulden.

“The Vera&John segment is once again the stand-out, with year-on-year revenue growth of 41% on a constant currency basis.

“The growth at Vera&John highlights our strategy of international diversification, with 44% of group revenue generated outside the UK in Q3.”

Goulden said that, as part of JPJ’s commitment to meeting the “highest industry standards” on responsible gambling, revenues at Jackpotjoy UK had been impacted by the responsible gambling measures the company implemented, and the closure of a number of high value accounts.

“We expect that the impact of closed accounts will begin to annualise during the second half of 2019 and, provided there are no further regulatory challenges, the Jackpotjoy segment will return to revenue growth thereafter.”

Overall, Goulden said the board remained “confident” in its outlook for the full year.

“We continue to enjoy a strong association with Gamesys in a relationship which provides mutual benefits and we are also excited by the significant growth opportunities that exist in both existing and new markets, where we are well-placed to take advantage of this promising backdrop.”