Gamesys boosted by B2C growth in 2018 results
Gamesys reported a 24.4% rise in revenue for the year ended March 31, 2018 as a result of strong growth from its customer-facing brands.
The gaming operator and software supplier saw revenue for the 12-month period grow to £287.2m, according to figures filed with Companies House, with the majority derived from its B2C brands, including Virgin Games, Heart Bingo and Monopoly Casino. This accounted for £165.1m of group revenue, up 34.5% year-on-year, or 57% of the total.
The company generated a further £118.3m in revenue from software and other support services provided to JPJ Group, which acquired various B2C assets such as the Jackpotjoy brand from Gamesys in February 2015, a 12.4% increase from the prior year.
This helped the business post earnings before interest, tax, depreciation and amortisation of £31.3m for the year, following a £2.5m loss for the prior period.
Gamesys reported a 35.6% rise in cost of sales, primarily gaming tax and licence fees, from £46.1m to £62.5m. Gross profit – turnover minus cost of sales - for the 12 months to March 2018 was up 21.7% to £224.6m.
Outgoings such as distribution costs, administrative expenses and impairment of fixed asset were up 10.6% to £212.7m. In total group operating profit was at £23.9m, up 246% from FY2017.
Gamesys brought in £9.1m in finance and other income, which was down considerably on the £33.8m accrued in the prior period as earn-out contributions from the Jackpotjoy sale decreased. After taxes of £3.4m, the business posted a profit of £29.6m, up from £18.8m in 2017.
“The directors anticipate that growth in operations and support services, together with future opportunities, will ensure the group is sustainable for the foreseeable future,” Gamesys said. “Against a challenging environment, we aim to grow by continuously providing our customers with innovative games and pursuing our current excellence in technology, marketing, product development and customer service."
Gamesys noted that it would continue to introduce new, innovative products, expand its distrbution channels and maintain a high level of customer service to differentiate its offering in an increasingly competitive market.
“A key market for the group continues to be the UK, and Brexit presents uncertainty to both customers and the wider economy," it added. "The group continues to monitor current events and consider the impact on future periods.”