JPJ Group plc


£472.9m market cap

635p last close

JPJ Group is a leading online gaming operator mainly focused on bingo-led gaming targeting towards female audiences. During Q119, 49% of revenues were generated in the UK.

Investment summary

JPJ’s standalone H119 revenues increased by 14% to £169.5m, with an adjusted EBITDA of £54.0m. Including Gamesys, pro-forma H119 revenues were £265.6m. This was above our expectations due to another exceptional performance in the Vera&John division, which grew revenues by 58%. As expected, the UK (both JPJ and Gamesys) and Sweden continue to suffer the impact of rising taxes and restrictive regulations. The Gamesys acquisition is due for completion in Q319 and we raise our FY19 pro-forma forecasts by c 3%. Our FY20 and FY21 forecasts remain broadly unchanged. JPJ trades at 7.0x EV/EBITDA and 5.6x P/E for FY20, at the low end of the peer group.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 304.7 108.6 78.2 103.9 6.1 4.6
2018A 319.6 112.7 92.7 118.5 5.4 4.4
2019E 535.0 153.8 112.8 93.8 6.8 7.4
2020E 563.8 175.4 141.9 118.0 5.4 4.3
Last updated on 20/08/2019
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 20/08/2019
Share price graph
Balance sheet
Forecast net debt (£m) 459.6
Forecast gearing ratio (%) 153
Price performance
Actual (6.5) (9.3) (26.2)
Relative* (1.8) (7.0) (21.1)
52-week high/low 865.0p/590.0p
*% relative to local index
Key management
Neil Goulden Chairman
Keith Laslop CFO

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