JPJ predicts strong FY18 profits on Vera&John performance
Operator announces “strong organic growth across a number of international markets” despite struggles for Jackpotjoy brand
Jackpotjoy Group (JPJ) has announced it will deliver the upper end of the market’s EBITDA forecast for the financial year ending 31 December 2018.
A JPJ statement this morning said the profit increase was due to strong organic growth by its Vera&John brands across a number of international markets.
The firm was projected to reach profits of £104m to £109m for the year, with Canaccord Genuity’s Simon Davies now forecasting EBITDA of £108.0m.
Neil Goulden, executive chairman at JPJ, said: “We are pleased with the performance of the Group during 2018, as we continue to take advantage of the growth opportunities present in international markets, notwithstanding what has been a challenging regulatory backdrop in the UK.
“We enter 2019 in a strong position to deliver further growth and to create value for shareholders,” Goulden said.
Canaccord’s Davies added: “We also forecast continued strong cash flow, with net debt projected to come down to £293.8m, or 2.7x Debt/EBITDA.”
“Strong growth in V&J and Botemania is helping to bail out the weaker UK business.
“FY19 will see the additional challenge in April of a rising PoC tax in the UK from 15% to 21%, but this is fully factored into our assumptions, and we see this tax increase as driving further UK market consolidation, with scope for the market-leading Jackpotjoy brand to gain market share.”
Despite Vera&John growth, the statement said profits for the JPJ brands in the UK have been hit by the introduction of enhanced responsible gambling measures in the UK.