Gamesys Group


£1263.7m market cap

1162p last close

Gamesys is a leading online gaming operator, with two-thirds of revenues from the UK. The group was formed after JPJ Group acquired Gamesys for £490m in September 2019.

Investment summary

Gamesys Group’s H120 pro forma revenue growth of 27% and adjusted EBITDA growth of 17% exceeded consensus expectations, demonstrating the strength of its strategy of growing the player base responsibly, while aiming for a high player retention rate. The improved financial position (net debt/adjusted EBITDA 2.27x) resulted in the introduction of a new dividend (company commentary implies 36p/share for FY20) earlier than anticipated by us and consensus. We increased our FY20 EBITDA forecast by 7.8%. Gamesys is not exposed to sports and therefore the business should be relatively unaffected by the coronavirus outbreak.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 319.6 112.7 92.7 118.5 9.8 8.1
2019A 565.3 158.9 119.5 100.4 11.6 12.5
2020E 680.7 189.5 147.5 122.0 9.5 7.7
2021E 725.0 208.7 169.7 140.2 8.3 6.9
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. Gaming companies must comply with a number of social responsibility measures, including ID checking, source of funds and AML checks. Sweden introduced a gaming tax of 18% from FY19.

Last updated on 17/09/2020
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Share price graph
Balance sheet
Forecast net debt (£m) 355.6
Forecast gearing ratio (%) 72
Price performance
Actual 4.5 36.1 62.1
Relative* 5.6 39.5 93.1
52-week high/low 1170.0p/531.0p
*% relative to local index
Key management
Neil Goulden Chairman
Keith Laslop CFO

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