JPJ Group plc


£515.4m market cap

692p last close

JPJ Group is a leading online gaming operator mainly focused on bingo-led gaming targeting towards female audiences. During Q119, 49% of revenues were generated in the UK.

Investment summary

JPJ is the leading player in the UK bingo-led market and is also expanding rapidly in other markets. Following the £490m acquisition of Gamesys (expected completion in Q319), c 30% of revenues will be derived from international markets. As a result of the deal, we forecast 10.5% EPS accretion in FY20, with net debt/EBITDA of 3.1x at YE19 falling to 2.0x at YE20 – at which point the company could start paying a dividend.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 304.7 108.6 78.2 103.9 6.7 5.0
2018A 319.6 112.7 92.7 118.5 5.8 4.8
2019E 518.1 149.9 108.9 90.6 7.6 8.6
2020E 563.8 175.4 141.9 118.0 5.9 4.8
Industry outlook

In the UK, the government has raised the remote gaming duty from 15% to 21%, with implementation from April 2019. Sweden has also introduced a gaming tax of 18% from FY19.

Last updated on 25/07/2019
Share price graph
Balance sheet
Forecast net debt (£m) 457.6
Forecast gearing ratio (%) 151
Price performance
Actual (5.5) 3.0 (30.1)
Relative* (6.5) 2.5 (28.2)
52-week high/low 1036.0p/590.0p
*% relative to local index
Key management
Neil Goulden Chairman
Keith Laslop CFO

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