15th May 2018 11:31
LONDON (Alliance News) - Jackpotjoy PLC said Tuesday it narrowed its first-quarter loss compared to the previous year as the online bingo company raise its revenue.
In the three months to March 31, Jackpotjoy reported a pretax loss of GBP7.4 million, improved from GBP15.2 million a year prior.
The company's first-quarter revenue increased 13% to GBP80.7 million from GBP71.4 million a year before. The gaming revenue from the Jackpotjoy business - which makes up 74% of total revenue - increased by 7% year-on-year. The Vera&John business reported a gaming revenue increase of 35%.
Adjusted earnings before interest, tax, depreciation and amortisation decreased by 7% year-on-year reflecting, according to Jackpotjoy, the "planned increase" in marketing costs and the "application of point of consumption tax to gross gaming revenue" in the UK.
Average active customers per month grew 7% year-on-year to 256,699 in the twelve months to March 31.
Average real money gaming revenue per months grew 17% year-on-year to GBP24.5 million. The monthly real money gaming revenue per average active customer increased 9% year-on-year to GBP95.
Looking forward, Jackpotjoy said reducing the company's net debt, currently GBP379.9 million, remains a "key strategic target" of the company. It believes "significant growth opportunities" exist in the UK.
After a "solid start" to 2018 the company believes its full-year outlook is "positive" and the company is trading "in line with expectations".
Executive Chairman Neil Goulden said: "The first quarter has seen a continuation in the good underlying momentum we saw in 2017. Group revenues were up 13% with Jackpotjoy, our largest business segment, up 7%, and Vera&John, up 35%, as both new and existing players continue to have a high level of engagement with our portfolio of games. Adjusted earnings before interest, tax, depreciation and amortisation decreased 7% year-on-year impacted by our TV advertising campaign in the UK, along with the introduction of the application of point of consumption tax to gross gaming revenue in the fourth quarter last year.
"As we have previously flagged, the investment in TV advertising will continue in the second quarter of 2018 including a campaign-launch in Spain. I am confident that we will continue to drive good growth and attractive returns for our shareholders over the remainder of the 2018 financial year and beyond"
Shares in Jackpotjoy were up 2.3% Tuesday to 850.00 pence each.
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