Jackpotjoy plc report good progress in FY2017 report but losses widen

Full year 2017 results from online bingo-led operator Jackpotjoy plc were negatively impacted by higher financing costs despite a strong performance that delivered double-digit revenue growth.

The company reported a good start to 2018 in which it plans to continue deleveraging the business.

Key financial highlights for the 12 months ending December 31, 2017, include:

o  14 percent rise in gaming revenue to reach GBP 304.6 million (2016: GBP 266.9 million), supported by 12 percent growth in the Jackpotjoy segment and 28 percent growth in Vera&John.

o  Adjusted EBITDA1 increased 6 percent to reach GBP 108.6 million (2016: GBP 102.2 million), reflecting a planned increase in marketing costs in the second half of the year and the application of point of consumption tax to gross gaming revenue (“POC2”) in the UK in Q4.

o  Adjusted net income1 declined 9 percent year-on-year to GBP 76.1 million (2016: GBP 83.5 million) attributed to higher net interest costs.

o  Net loss of GBP 67.9 million (2016: GBP 40.6 million).

o  Record GBP 101 million of operating cash flow generated in 2017, equating to 22 percent growth year-on-year.

o  Free cash flow (operating cash flow less capital expenditure) of GBP 97.8 million

o  Successful refinancing of debt facilities and annualised interest cost savings in excess of GBP 9.0 million a year

o  Adjusted net debt of GBP 387.3 million (reduced from GBP 408.1 million at 31 December 2016).

Neil Goulden, Executive Chairman, commented:

“The record financial results we achieved in 2017 reflect the dedication, ambition and work ethic present in employees across the business.”

“We are confident of our prospects for growth against a healthy market backdrop in global online gaming and determined to ensure we present an entertaining, fun and responsible environment for our customers to enjoy.”

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