Jackpotjoy details revenue growth as losses cut in Q3
Jackpotjoy has reported a year-on-year rise in gaming revenue during the third quarter and has also cut net loss in the period.
Gaming revenue for the three months through to September 30 totalled £75.4m (€84.3m/$98.8m), which represents an increase of 14% on the same period last year.
Net loss was cut from £18.6m to £7.7m, while Jackpotjoy also noted a 4% year-on-year increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to £26.7m.
Operating cash flows jumped by 78% from £18.3m to £32.6m, although adjusted net income dropped 14% from £21.2m to £18.3m.
The third-quarter results place gaming revenue for the year-to-date at £222m, which is 14% more than the £194m recorded at the same point last year.
Net loss improved 2% and now stands at £27.7m, while EBITDA climbed 11% to £85.9m.
Adjusted net income is down 4% year-on-year to £60.9m, while operating cash flows increased by 24% from £63.3m to £78.2m.
Confirmation of the results comes after Jackpotjoy last month announced that Andy McIver is to step down as chief executive after it opted to put in place a new management structure.
Current chairman Goulden will now become executive chairman and assume responsibility for leading the development and execution of the firm’s long-term strategy.
In addition, Simon Wykes will take on the role of group managing director, with the main task of working in the firm’s global markets with senior management teams across the firm’s three business segments: Jackpotjoy, Vera&John, and Mandalay.
Reflecting on the quarterly performance, Goulden said: “The third quarter has seen a continuation in the strong underlying momentum that we saw during the first six months of 2017, with gaming revenue up 14% and adjusted EBITDA up 4%.
“There continues to be solid customer growth across the group, with our Vera&John business segment performing particularly well, with constant currency revenue growth of 21% in the quarter.”
Goulden also spoke about the new management structure at Jackpotjoy and how this will impact operations moving forward.
“In my new role as executive chairman, I will be responsible for leading the development and execution of long term strategy, while Simon Wykes has joined us as group managing director to provide additional operational expertise.
“Andy will step down as a director on December 31 and will remain with the company until January 31, 2018, to ensure a smooth transition of duties to the new members of the executive team.
“Against a positive operational backdrop and given the new management structure in place, I have full confidence that Jackpotjoy will continue to go from strength-to-strength and generate attractive returns for our shareholders.”
Related article: Jackpotjoy CEO McIver to exit amid management reshuffle