Gamesys' (GYS) adjusted cash profits surged up by three-quarters to £95m in the first half, as more players tried their luck with bingo games during the lockdown period. The gambling operator said that gaming revenue doubled year on year, led by exceptional growth in Asia and robust trading in the UK.
Gamesys posted record performance in its business in Asia, where revenues climbed 92 per cent – driven by new customer growth, momentum in Japan and the launch of its InterCasino brand. Across the group, average active players per month grew by more than a tenth to 640,436.
The picture was less sunny in Europe, however, where revenues were in decline – executive chair Neil Goulden flagged regulatory challenges in Sweden and its other Nordic markets. Mr Goulden, who has overseen the group’s transformational merger period in which it rebranded as Gamesys, will return to the position of non-executive chair from the beginning of October.
Looking ahead, management noted that it remains cautious about the macroeconomic uncertainty created by coronavirus – although it has introduced a maiden half-year dividend on the back of the strong showing.
Broker Peel Hunt forecasts adjusted pre-tax profits and EPS of £147.7m and 122p, respectively, in the 2020 full year, rising to £163.4m and 135p in 2021.
GAMESYS (GYS) | ||||
ORD PRICE: | 1,120p | MARKET VALUE: | £1.2bn | |
TOUCH: | 1,116-1,122p | 12-MONTH HIGH: | 1,120p | LOW: 531p |
DIVIDEND YIELD: | 1.1% | PE RATIO: | 43 | |
NET ASSET VALUE: | 447p* | NET DEBT: | 80% |
Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
2019 | 170 | 6.3 | 6.2 | nil |
2020 | 340 | 26.7 | 21.4 | 12.0 |
% change | +101 | +324 | +245 | - |
Ex-div: | 10 Sep | |||
Payment: | 15 Oct | |||
*Includes intangible assets of £979.6m, or 900p a share |