Jackpot Joy Owner Gamesys To Meet Forecasts In "Tremendous" Year

(Alliance News) - Online bingo and casino games operator Gamesys Group PLC on Tuesday shook off ...

Alliance News 12 January, 2021 | 9:12AM
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(Alliance News) - Online bingo and casino games operator Gamesys Group PLC on Tuesday shook off Covid-19's "unprecedented challenges" and tipped its 2020 performance to top market expectations.

Gamesys shares were 3.7% higher at 1,302.00 pence each in London on Tuesday morning, one of the best-performing mid-cap stocks.

The Jackpot Joy and Rainbow Riches owner said it is "confident" that revenue and its adjusted earnings before interest, tax, depreciation and amortisation will be at or above the top end of market estimates.

Davy Research said Tuesday that Gamesys is likely to achieve an adjusted Ebitda above GBP200 million, up at least 69% annually, and above consensus of GBP197 million.

In 2019, Gamesys reported adjusted Ebitda of GBP118.2 million, up 9.0%, on revenue of GBP415.1 million, up 35% from 2018.

"Gamesys has delivered a tremendous performance during 2020. Our strong growth is the result of excellent execution against our strategy, a deep understanding of our player base, and our commitment to always putting players at the heart of everything that we do," Chief Executive Officer Lee Fenton said.

The company also operates Virgin Casino, Monopoly Casino and Heart Bingo, which leverages its branding from the Heart UK radio station.

Gamesys was formed back in September 2019 after online bingo-led operator JPJ Group completed the acquisition of Gamesys Holdings Ltd, excluding its sports brands and games.

JPJ, formerly known as Jackpotjoy, paid GBP250 million in cash for Gamesys Holdings Ltd as well as GBP240 million in new shares.

Gamesys said on Tuesday: "Following the transformative merger to create Gamesys Group PLC in 2019, the integration of operations has progressed as expected, despite the unprecedented challenges presented by the Covid-19 pandemic. An outstanding operational performance has been underpinned by our intensified focus on responsible gambling and prioritising the health and well-being of our players as well as our employees."

By Eric Cunha; ericcunha@alliancenews.com

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