Jackpotjoy cuts losses as key financials rise in Q2

Jackpotjoy has posted year-on-year growth across key financials during the three months to June 30, while the company was also able to cut losses.

Revenue came in at £75.2m (€82.5m/$96.9m), up 17% on the £64.3m collected in the corresponding period last year,

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 28% from £23.5m to £30m, while operating cash flows jumped 21% to £22.3m.

Jackpotjoy also reported that adjusted net income was up 14% year-on-year to £21.8m, while net loss was cut from £14.9m to £4.8m.

The second-quarter results place revenue for the first half of the current year at £146.6m, which is 13% more than at the same point in 2016.

Adjusted EBITDA hiked 15% year-on-year to £59.2m, with operating cash flows also up 2% to £45.6m and adjusted net income level at £42.6m.

Net loss for the six-month period was up from £9.8m to £20.1m.

Andrew McIver, chief executive of Jackpotjoy, said: “The second quarter has been another good quarter of growth across the group with revenue increasing 17%, including top-line growth of 18% at our leading UK bingo brand, Jackpotjoy.

“A key priority for the group is to reduce our historic debt burden; the business is highly cash generative with cash conversion in Q2 of 99%, excluding one-off and exceptional items.

“Consequently, our adjusted net leverage reduced from 4.0x to 3.6x during the six months and gross debt reduced from £514.8m to £414.5m.

“A major milestone in this debt reduction was achieved in June when we made the final earn-out payment of £94.2m for the non-Spanish assets within the Jackpotjoy segment, using existing cash resources, with the total consideration representing excellent value for shareholders.”

Related article: Jackpotjoy posts 11% rise in Q1 revenues, £3m drop in net income