Gamesys Group


£891.1m market cap

820p 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 (formerly JPJ Group) is a leading online gaming operator with two thirds of revenues from the UK. Pro forma Q319 revenues increased by 20% to £144.3m due to 57% growth in Vera&John (international markets), strong momentum in the acquired Gamesys business and, encouragingly, a return to growth in the Jackpotjoy UK brand. The business is highly cash generative and we forecast adjusted net debt/EBITDA to fall from 3.0x currently to 2.0x by FY20, at which point we expect the company to pay a dividend. The company’s pre-close trading update confirmed that FY19 pro forma revenues and adjusted EBITDA are expected to be at the top end of consensus. FY19 results are due in March 2020.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 304.7 108.6 78.2 103.9 7.7 5.8
2018A 319.6 112.7 92.7 118.5 6.8 5.6
2019E 547.4 153.8 112.8 93.7 8.5 10.3
2020E 578.4 175.4 141.9 117.8 6.8 5.4
Industry outlook

In the UK, the government has raised the remote gaming duty from 15% to 21%, with implementation from April 2019. Gaming companies must also comply with a number of social responsibility measures, including ID checking, source of funds and AML checks. Sweden has also introduced a gaming tax of 18% from FY19. There has also been recent speculation regarding a potential £2 online stake limit in the UK.

Last updated on 12/02/2020
Share price graph
Balance sheet
Forecast net debt (£m) 458.5
Forecast gearing ratio (%) 93
Price performance
Actual 10.3 15.9 13.1
Relative* 12.3 13.1 7.2
52-week high/low 820.0p/635.0p
*% relative to local index
Key management
Neil Goulden Chairman
Keith Laslop CFO

Content on Gamesys Group