JPJ Group posts positive third quarter results

JPJ Group posted its Q3-2018 results this week, reporting overall revenue up 8 percent y-o-y at GBP 77.8 million, with a good performance from the Vera&John division but a 3 percent revenue decline at flagship brand Jackpotjoy, which contributed revenue of GBP 53.5 million.

Management said it expects the decline to be of a short term nature, and attributed the dip to stricter responsible gambling measures and a weaker result from its Mandalay brands.

Vera&John was the star performer in growth terms with revenues up 41 percent y-o-y on a constant currency basis, reaching GBP 52.7 million… 33 percent of group revenues.

JPJ executive chair Neil Goulden reported: “The Vera&John segment is once again the stand-out. The growth at Vera&John highlights our strategy of international diversification, with 44 percent of Group revenue generated outside the UK in Q3.”

The quarterly report additionally notes:

* After tax profit of GBP 7.3 million in the quarter, a notable turnaround from the net loss of GBP 8.2 mikllion in the same period a year ago;

* Costs slightly lower at GBP 65.1 million;

* Adjusted EBITDA up almost 13 percent y-o-y at GBP 28.8 million, thanks principally to good growth at Vera&John;

* An agreement to sell the group’s social gaming business to South Korean studio Bagelcode for GBP 18 million in order to concentrate on real-money assets;

* Initiatives to bring in-house operational functions currently outsourced to Gamesys, from who Jackpotjoy was acquired;

* A decision not to extend the non-compete agreement with Gamesys.