Double-digit revenue growth for Jackpotjoy

Business News

Jackpotjoy, a leading global online bingo-led operator, today announces the results of the Jackpotjoy group for the three months ended 31 March 2018.

  • Gaming revenue rose 13% year-on-year, supported by 7% revenue growth in the Jackpotjoy3 segment and 35% revenue growth in Vera&John
  • Adjusted EBITDA 1 decreased 7% year-on-year reflecting the planned increase in marketing costs and the application of point of consumption tax to
  • gross gaming revenue (‘POC2’) in the UK from Q4 2017
  • Adjusted net income1 increased 3% year-on-year principally due to a decrease in interest expense following the debt refinancing in Q4 2017

Strong ongoing cash generation

  • Operating cash flow of £24.4 million, an increase of 5% year-on-year, and 33p of operating cash flow per share2
  • Adjusted EBITDA1 to cash conversion of 90%
  • Free cash flow4 of £24.7 million
  • Adjusted net debt5 of £379.9 million (compared to £387.3 million at 31 December 2017) and adjusted net leverage ratio6 of 3.57x

After a solid start to 2018, and strong double-digit revenue growth, the outlook is positive for the full-year and the Group is trading in line with expectations.

Neil Goulden, Executive Chairman, commented:

“The first quarter has seen a continuation in the good underlying momentum we saw in 2017. Group revenues were up 13% with Jackpotjoy our largest business segment, up 7%, and Vera&John, up 35%, as both new and existing players continue to have a high level of engagement with our portfolio of games.

Adjusted EBITDA decreased 7% year-on-year impacted by our TV advertising campaign in the UK, along with the introduction of POC2 in Q4 last year. As we have previously flagged, the investment in TV advertising will continue in Q2 2018 including a campaign-launch in Spain. I am confident that we will continue to drive good growth and attractive returns for our shareholders over the remainder of FY18 and beyond.”