EGR Power 50 2020: Gamesys Group (5)
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5. Gamesys Group (8)
FINANCIALS: Pro forma revenue in H1 was up 27% year-on-year to £340m while FTDs rose 21% as deposits surpassed £1bn. Pro forma revenue for Q3 jumped 31% to £190m
STRATEGY & IMPACT: Boasts a stellar stable of brands running on its in-house tech platform. CRM and maximising player LTVs are two core strengths
GEOGRAPHIC REACH: UK accounts for over half of revenue, yet a solid foothold in the grey Japanese market with Vera&John and now InterCasino is reaping rewards
INFLUENCE & LEADERSHIP: Besides being one of Europe’s largest bingo operators, Gamesys is also one of its most successful online casino operators, while the acquisition by JPJ Group was a masterstroke
It is just over a year since the completion of JPJ Group’s logical acquisition of tech partner Gamesys Group, resulting in the enlarged entity rebranding to Gamesys Group. Since the £490m deal, Gamesys’ shares have risen 50%, giving the FTSE 250 company a market cap of £1.2bn, and financial performance in 2020 has been eye-catching. H1 pro forma revenue rose 27% year-on-year – the highest among its main competitors – as the bingo and casino operator benefited from the shift from sports betting to gaming and the transition from land-based to online gaming during lockdown.
And this momentum continued into Q3 as pro forma revenue leapt 31%, outpacing analysts’ predictions. While the UK is the group’s largest market, it is Asia (mainly Japan) that has been the growth engine. Q3 growth in percentage terms was in the “high double digits” for the region on the back of pro forma revenue rocketing 92% year-on-year in H1 to £98.9m and FTDs up 76%. Japan itself accounts for more than a quarter of group revenue and has grown 100% on an annual compound growth rate since 2017. Moreover, analyst firm Numis predicts the Land of the Rising Sun will become Gamesys’ single-largest market within the next couple of years.
The operator launched a Japan-facing version of its stalwart InterCasino brand in Q3 – its second casino targeting this grey market after Vera&John – and recently opened an operations hub on the Isle of Man dedicated to the Far East. Elsewhere, Rainbow Riches Casino launched in the UK at the end of 2019 and Monopoly Casino was unleashed in Spain in June. There was also “healthy double-digit” top-line growth during Q3 in the US (New Jersey) following on from a 37% year-on-year rise in pro forma revenue in H1.
Gamesys has been in New Jersey with Virgin Games and powering Tropicana Casino since 2013, yet management have said expansion into additional states is being actively explored. As is a sportsbook to complement gaming (Virgin Bet wasn’t included in JPJ’s acquisition). RG remains a key pillar of the business; it was the first operator following lockdown to stop untargeted customer marketing and halt TV and radio campaigns, while there was a 34% surge in players setting deposit limits in Q2. To cap it all, Gamesys scooped the headline operator of the year award at the EGR Operator Awards in November, underlining how 2020 performance is certainly no lucky streak.