Online bingo operator JPJ (JPJ) is steadily becoming a more international business. Analysts at Numis estimate that less than half of the group’s sales now come from the UK, compared with 66 per cent when the gambling company went public. This dependence is expected to reduce further as international markets continue to grow more quickly, and fears of tighter regulation in the UK intensify. The 10 per cent increase in net gaming revenue to £320m was driven in part by a 42 per cent improvement under the Vera&John business, with strong performance in Japan highlighted by management. The underlying technology platform has allowed Vera&John to geographically diversify from its Scandinavian base into Germany, Asia, and Brazil.
Full-year gaming revenue from Jackpotjoy was flat, while adjusted cash profits fell 4 per cent due to a weak performance from the Mandalay and Jackpotjoy UK brands. The latter business saw a number of high-value accounts close due to the impact of enhanced responsible gambling measures. Since the period end JPJ sold Mandalay to a subsidiary of 888 (888) for £18m, and now plans to concentrate UK marketing on the Jackpotjoy brand.
Analysts at Numis expect adjusted pre-tax profits of £81.1m during 2019, giving EPS of 107p, compared with £91.5m and 120p in 2018.
| JPJ (JPJ) | ||||
| ORD PRICE: | 700p | MARKET VALUE: | £520m | |
| TOUCH: | 696-702p | 12-MONTH HIGH: | 1,048p | LOW: 571p |
| DIVIDEND YIELD: | nil | PE RATIO: | 35 | |
| NET ASSET VALUE: | 295p* | NET DEBT**: | 156% | |
| Year to 31 Dec | Turnover (CA$m) | Pre-tax profit (CA$m) | Earnings per share (CA¢) | Dividend per share (CA¢) |
| 2014*** | 40.8 | -26.0 | na | nil |
| Year to | Turnover | Pre-tax | Earnings | Dividend |
| 31 Dec | (£m) | profit (£m) | per share (p) | per share (p) |
| 2015 | 185 | -114 | -188 | nil |
| 2016 | 267 | -40.7 | -57.0 | nil |
| 2017 | 289 | -70.0 | -92 | nil |
| 2018 | 320 | 18.5 | 20 | nil |
| % change | +10 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £515m, or 693p a share **Does not include £6.2m of restricted cash ***Pre-IPO figures | ||||
