Gaming group Gamesys have announced a big increase in revenue during the third quarter of 2019 following a busy year.
The Gamesys Group, which was previously known as the JPJ Group, has revealed an increase in its gaming revenue of 23% to £92.4m in the third quarter of 2019, compared to the same period of 2018, with organic growth in non-UK markets cited as the major driver.
Even discounting the acquisition of Gamesys, and the Gamesys brands Virgin Games, Virgin Casino, Heart Bingo and Monopoly Casino, the overall growth figure for the third quarter is still 20% higher than for the third quarter of last year.
Adjusted EBITDA was down by 8% on last year, a drop that was largely down to the increases in UK gaming taxes brought in during this period. In October last year, the UK Government announced that Remote Gaming Duty (RGD) would be increased from 14% to 21%. This was in part to compensate the loss of tax revenue resulting from the maximum stake reduction on Fixed Odds Betting Terminals (FOBTs) but the RGD change has affected all firms in the online casino gaming sector.
During the period, the Group increased its debt profile by a significant £173.6 million in order to help fund the purchase of Gamesys. At the end of the quarter, the Group’s adjusted net debt stood at £484.7m and the Group also showed an increase in net leverage ratio.
Reflecting on the figures, the executive chairman of the Group, Neil Goulden, said that he was pleased with the growth, which was in part down to strong performances in the company’s existing and acquired brands and that he was confident about the Group’s place in the online sector:
“During the quarter, the group successfully completed the Gamesys acquisition, creating a leading UK and international operator and offering customers an even greater choice of major brands and different games.”