Performance figures remain robust, although the new POC tax will impact the bottom line from Q4 onwards.
Companies: Gamesys Group PLC
Online bingo platform Jackpotjoy (LON: JPJ) has announced its Q3 17 results today which highlight the continued strong performance from the Group.
Management said they are "confident in meeting upper end of expectations" after reporting Group Revenue growth of 14% to £75m, halving its Net Loss, and reporting a 4% increase in EBITDA when compared to Q3 16.
Average active customer numbers also grew by 13% while average monthly gaming revenues increased 16%.
Despite the growth figures the bottom line is expected to be impacted from Q4 onwards from the introduction of the UK point of consumption ("POC") tax on bonuses.
Previous brand ambassador Barbara Windsor was also replaced during the quarter by TV personality Paddy McGuinness, with the subsequent tv campaigns increasing marketing costs by 53%. This will have a further impact on full-year profit figures which will be reported early next year.
At the time of writing JPJ shares were down 2% at 840p. Since JPJ listed in January 2017 at 616p the stock has grown by 36%.
Along with the Jackpotjoy brand, which accounts for 65% of total Group revenues, JPJ also operates as Vera & John which saw Revenues increase by 28% while the Mandalay brand saw Revenues slump by 8%.
Currently, JPJ has a Market Cap of £635m and trades at an earnings multiple of 8x. Consensus forecasts the Group will make Revenues of c. £298m in FY17, up from the £269m and £197m in FY16 and FY15 respectively. Consensus also expects FY17 to be the Group's maiden profit year with forecasts of c. £72m in Net Profit.