Gamesys Group Commends JPJ Acquisition For Considerable Growth

Gamesys Group commended its recent acquisition of JPJ for £490 million in September, which resulted in an increase in overall gaming sales for the six months ending 30 June 2020, while also leading to its organic growth in the online gaming segment of the Company.

Highlighting the rise of online gaming during the COVID-19 pandemic, which increased by 27 percent, Gamesys also reported a significant increase in gaming sales for its UK operations, jumping from £78 m in H1 2019 to £197.4 m in 2020, a 16 percent increase. Asia had seen an rise from £51.5 million in 2019 to £98.9 million in 2020.

However, the group registered steady growth in Spain amid more’advertising and incentive limitations due to the virus outbreak, European revenues dropped by four percent. Gamesys continued to highlight a good performance in Germany, while acknowledging that Nordic challenges led the company to ‘investing significantly in customer acquisition in this region at the present time’.

In the six months ended June 30 2020, the rest of the country, including New Jersey, had an increased income of 37 percent.

Commenting on the results, Gamesys Group CEO Lee Fenton said: “It has been very pleasing to oversee another strong half-year performance, with reported gaming revenues doubling across the group year-on-year.

“Our strong brands, operational control and proprietary technology have allowed us to drive growth in established markets such as the UK, while also delivering strong results in fast-growing markets in Asia and ROW.”

Since December 31 of last year, Gamesys has seen a decrease of £30m in non-current assets which it says is primarily due to the ‘amortisation’ of the group’s intangible assets. The business states that the £14.3 million increase in current assets, excluding a cash rise of £35.7 million since December 31 , 2019, is due to a £17.1 million rise in player deposits that was powered by good performance generated over the six months ended June 30, 2020.

Fenton added: “At the heart of this has been our commitment to responsible gambling, which was vital during a period in which many of our players were living in lockdown. As a result, we took decisive action during the period to enhance our player protection, both through investing in new capabilities and resources, and also ceasing certain marketing activities.

“We believe that this enlarged and highly engaged customer base will be key to driving sustainable growth in the future, positioning us well for the exciting opportunities ahead.”

The business also reported an rise in current liabilities of £24.4 m, with the corporation emphasizing the increased accounts payable and deferred liabilities due to an increase in operating expenses as well as increased player commitments. The reduction in non-current liabilities of £26.1 m relates to a £40 m payment made on the GBP term loan for the company.

Gamesys, executive chairman Neil Goulden commented: “The group has produced a strong first half financial performance despite the clear and striking challenges posed by the COVID-19 pandemic.

“I would like to acknowledge the hard work and dedication of all our employees across the group during this difficult time, without which we would not have been able to deliver a safe and enjoyable experience for our customers.

“Having led the group through a transformational period – one that has seen us relist on the London Stock Exchange; subsequently obtain a premium listing; successfully merge with and rebrand as Gamesys; become a FTSE-250 constituent; and now introduce a progressive dividend policy – I believe the time is right for me to return to the position of non-executive chair, which will be effective from October 1, 2020.

“Following the Gamesys acquisition in September 2019, we now have an exceptionally strong executive team in place and have successfully integrated the two businesses and delivered strong, sustainable results. The business is in very good hands and I look forward to supporting Lee and his team going forward.”

Adjusted EBITDA also grew during the period, increasing by 19 percent from £87.2 million to £103.9 million while net profit rose by 68 percent to £ 68.1 million.

Average active players per month rose to 640,436 year-on-year in the twelve months up to June 30 , 2020, an increase of 14 percent.