JPJ Group revenues up 13% in Q1 as Vera&John leads growth
A 62% increase in Vera&John revenues offsets UK Jackpotjoy decline
JPJ Group has reported a 13% year-on-year rise in its group revenues for Q1 2019, with first quarter revenues topping £83.3m.
The company attributed the rise to strong organic growth in its Vera&John subsidiary, which also contributed to a 16% y-o-y rise in adjusted company EBITDA to £29m.
Vera&John revenues, which account for 41% of the group’s total gaming revenues, jumped 62% y-o-y to £34.2m.
JPJ said these increases reflected the scalability of its proprietary technology platform.
Revenues from Jackpotjoy, which constitutes the larger share of overall group revenues, fell by 8% y-o-y to £49.1m, due to a decline in its UK operations resulting from the introduction of enhanced responsible gambling measures in 2018.
JPJ also highlighted the “intense competitive environment” and introduction of gaming taxation in Sweden, coupled with increased marketing spend in Spain and the UK as affecting its financial performance during this period.
During the quarter, JPJ group completed the £18m sale of its Mandalay business, resulting in a £12m upfront cash injection into company funds in March. The remaining £6m will be paid in September 2019.
Speaking about the sale, Neil Goulden, executive chairman, said it would allow the firm to focus on driving progress in its core market-leading brands in the UK.
“We remain convinced of the growth opportunities in global online gaming markets and are confident that we are well-placed to take advantage of this positive backdrop and deliver value to shareholders,” Goulden said.
Analysts Regulus Partners highlighted JPJ’s positive diversification but said the key test remains whether JPJ can return to strong and sustainable growth in domestically regulated markets.