“Market dominance brings the cash” for Jackpotjoy Plc

The world’s largest online bingo-led operator, Jackpotjoy Plc continues to grow according to a report by the investment research and advisory company, Edison.

Jackpotjoy Plc has recorded strong Q1 results with strong cash generation according to a financial report conducted by Edison.

Commenting on Jackpotjoy plc, Edison stated: “Market dominance brings the cash. Despite regulatory headwinds, we forecast continued strong underlying growth and we would expect a re-rating as debt repayments begin to drive value to equity.”

Victoria Pease, analyst at Edison Investment Research, said: “Driven by the market-leading Jackpotjoy division, Q1 gaming revenues rose 11% to £71.4m with an EBITDA margin of 40.9% and underlying cash conversion of c 100%. Q2 trading has started well across all divisions. Adjusted net debt/EBITDA of c 4.0x remains high, but Jackpotjoy plc (JPJ) is comfortably positioned to pay a major c £95m earnout in June and we expect significant deleverage from 2018. The market is pricing in a high degree of execution risk, with 2017 trading multiples of 6.9x EV/EBITDA and 6.1x P/E. Despite regulatory headwinds, we forecast continued strong underlying growth and we would expect a re-rating as debt repayments begin to drive value to equity.”

To access to full note on Jackpotjoy plc, please follow this link.