Gamesys Group


£748.7m market cap

689p last close

Gamesys Group (formerly JPJ Group) is a leading online gaming operator which provides online bingo and casino games to a global customer base.

Investment summary

Gamesys’ 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 EBITDA margin declined 680bp to 26.7% as a result of higher taxes and marketing spend. We are raising our FY19 revenues estimate by 2.3% but keeping our EBITDA forecasts unchanged. We continue to forecast net cash flow of £105m in FY20 and our net debt/EBITDA falls from 3.0x currently to 2.0x at end FY20. The stock trades at 6.0x P/E and 7.1x EV/EBITDA, with a 13.8% FCF yield for FY20e.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 304.7 108.6 78.2 103.9 6.6 5.0
2018A 319.6 112.7 92.7 118.5 5.8 4.8
2019E 547.4 153.8 112.8 93.7 7.4 8.8
2020E 578.4 175.4 141.9 117.8 5.8 4.7
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.

Last updated on 09/12/2019
Share price graph
Balance sheet
Forecast net debt (£m) 458.5
Forecast gearing ratio (%) 93
Price performance
Actual (1.6) 0.6 7.0
Relative* (0.7) (0.5) (1.3)
52-week high/low 808.0p/606.0p
*% relative to local index
Key management
Neil Goulden Chairman
Keith Laslop CFO

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