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JPJ Group plc (JPJ)

Business description

JPJ Group plc is a leading online gaming operator mainly focused on bingo-led gaming targeted towards female audiences. At September 2018, 56% of revenues were generated in the UK.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 269.0 102.2 83.5 112.6 5.6 5.3
2017A 304.7 108.6 78.2 103.9 6.1 4.6
2018E 311.4 106.2 86.3 110.6 5.7 4.5
2019E 328.4 99.0 84.5 105.1 6.0 5.3

Last updated on 22/11/2018

Investment summary

JPJ has a c 23% market share in the c £650m UK bingo-led market. Given the numerous regulatory challenges in the UK, the company's strategy has been to expand abroad, and JPJ is increasing scale in other markets, including Spain, Sweden, Germany and Japan. At Q318, international revenues comprised 44% of total revenues. We expect meaningful deleverage now that the final major earn-out payment has been paid (June 2018).

Last updated on 29/11/2018

Industry outlook

In the UK, the government has raised the remote gaming duty from 15% to 21%, with implementation from April 2019. We estimate that this will reduce Group EBITDA by £12m.

Last updated on 29/11/2018

Key management

Neil Goulden, Chairman
Keith Laslop, CFO

Company address

35 Great St Helen’s Street
London
EC3A 6AP
United Kingdom
+44 (0) 207 160 5000
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