The Vera&John brand continues to perform well overseas for online bingo operator JPJ Group (JPJ). Gaming revenue from the division was up 58 per cent to £71.8m during the first half, with adjusted cash profits 109 per cent higher at £25.8m, despite increases in both distribution and administrative costs. This organic growth was driven by strong trading in new markets such as Germany, Brazil and Japan, and continued business-to-business growth across Asia. This momentum is not expected to slow, as management expects Vera&John to continue to be the fastest growing division.
Strong performance in Vera&John helped to offset the challenges faced by the Jackpotjoy brand in recent months. During the second quarter, remote gaming duty in the UK increased from 15 per cent to 21 per cent, while the responsible gaming measures around the source of funds for higher stakes gambles continue to have an effect. This contributed to a 6 per cent year-on-year decline in gaming revenue from Jackpotjoy, with weakness coming from both the UK and Swedish divisions.
Analysts at Numis expect pre-tax profits of £84.3m during 2019, giving EPS of 111p, increasing to £145m and 121p in 2020.
|JPJ GROUP (JPJ)|
|ORD PRICE:||656p||MARKET VALUE:||£489m|
|TOUCH:||656-660p||12-MONTH HIGH:||1,040p||LOW: 571p|
|DIVIDEND YIELD:||NIL||PE RATIO:||24|
|NET ASSET VALUE:||300p*||NET DEBT:||115%**|
|Half-year to 30 Jun||Turnover (£m)||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
|*Includes intangible assets of £479m, or 643p a share **Does not include £4.38m of lease liabilities|