£1491.2m market cap
1364p last close
Gamesys is a leading international online gaming operator. The group was formed after JPJ Group acquired Gamesys for £490m in September 2019.
Investment summary
Gamesys Group’s strong momentum continued into Q420 and at the recent trading update, management said it expects FY20 pro forma revenue and adjusted EBITDA will be at or above the upper end of market expectations. This implies pro forma revenue growth for Q420/FY20 of at least 25.6%/27.8% respectively. The FY20 EBITDA margin of at least 27.5% is higher than our prior forecast of 26.9%, even though internal investment increased. The higher than expected profit outturn is likely to have led to a further improvement in the group’s financial position at the year end. We increased our FY21 and FY22 adjusted EBITDA forecasts by 4–6%.
Y/E Dec |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2018A | 319.6 | 112.7 | 92.7 | 118.5 | 11.5 | 9.5 |
| 2019A | 565.3 | 158.9 | 119.5 | 100.4 | 13.6 | 14.7 |
| 2020E | 724.0 | 200.8 | 159.8 | 132.2 | 10.3 | 8.4 |
| 2021E | 796.4 | 220.8 | 183.8 | 151.9 | 9.0 | 7.6 |
Industry outlook
Retail gambling and sports are currently faced with the impact of COVID-19, but we note that Gamesys is not exposed to either sector. Gaming companies have been subject to ongoing regulatory intervention in the UK, including a ban on the use of credit cards to gamble online from April 2020, and recent new guidance to protect consumers during the COVID-19 lockdown. In December 2020, the DCMS launched a review of the 2005 Gambling Act with a Call for Evidence until 31 March 2021.
Last updated on 26/02/2021
Sector |
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| Consumer |
Share price graph
Balance sheet |
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| Forecast net debt (£m) | 344.5 |
| Forecast gearing ratio (%) | 68 |
Price performance
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Key management |
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| Lee Fenton | CEO |
| Keith Laslop | CFO |
| Neil Goulden | Non-executive chair |
