Gamesys Group


£784.6m market cap

722p 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 has reported a positive pre-close trading update following a strong final quarter. The company expects FY19 pro-forma revenue and adjusted EBITDA to reach the top end of consensus estimates, with encouraging trends across the different divisions. Revenues from international markets (35% of total) continue to post high growth and, importantly, H219 has witnessed a return to growth in the core UK market. FY19 results are due in March 2020 and we believe there is a slight upside risk to our FY19 figures. For FY20e the stock trades at 6.2x P/E and 7.3x EV/EBITDA, with a 13.3% FCF yield.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 304.7 108.6 78.2 103.9 6.9 5.2
2018A 319.6 112.7 92.7 118.5 6.1 5.0
2019E 547.4 153.8 112.8 93.7 7.7 9.3
2020E 578.4 175.4 141.9 117.8 6.1 4.9
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.

Last updated on 24/01/2020
Share price graph
Balance sheet
Forecast net debt (£m) 458.5
Forecast gearing ratio (%) 93
Price performance
Actual 2.7 (9.4) 17.4
Relative* 3.3 (13.3) 4.6
52-week high/low 808.0p/635.0p
*% relative to local index
Key management
Neil Goulden Chairman
Keith Laslop CFO

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