JPJ Group 2018 revenues climb 10% despite UK slowdown
Strong organic growth in Vera&John offsets UK and Mandalay stagnation
JPJ Group has reported a 10% year-on-year rise in gaming revenues for 2018, despite slowing growth in its JackpotJoy UK and Mandalay brands.
Full-year gaming revenues were £319.6m, up from the £289.3m reported during 2017, which the company attributed to “strong organic growth” in its Vera&John business.
Overall Vera&John revenues grew by 42% during 2018, rising to £103.6m from a previous 2017 high of £73.2m. Adjusted EBITDA for this segment rose by 71% on a constant currency basis during 2018.
Revenues from the Jackpotjoy segment of the business, which includes Jackpotjoy UK and Mandalay, accounted for 68% of group revenues but remained largely flat at £216m in 2018.
In February, the group completed the sale of its Mandalay business to 888 for £18m.
The slowdown was partially offset by increases in the Starspins and Botemania brands, which collectively accounted for 29% of the revenue generated by the Jackpotjoy segment.
Company adjusted EBITDA increased by 9% year-on-year, buoyed by a 27% year-on-year increase in adjusted net incomes. The number of active customers per month grew to 259,664 during 2018, an increase of 4% on figures reported during 2017.
During 2018, the JPJ group moved to a premium listing on the London Stock Exchange in order to attract a wider investor base.
Despite the flat performance of its UK business, Neil Goulden, JPJ Group executive chairman, said he was pleased with the progress the business had made during 2018, in which the group “continued to deliver on its strategy”.
Analysts Numis said the group had performed above its estimates for the year, despite those estimates being revised following guidance from the group that performance would be at the “upper end of current market expectations”.
Addressing the slowdown in JPJ’s UK business, Numis believes this will continue, especially with international markets continuing to grow faster than the UK, voicing its expectation that JPJ’s dependence on the UK market to reduce further.