Share price slip for Jackpotjoy despite increased gaming revenues

Share price slip for Jackpotjoy despite increased gaming revenues

Wednesday, November 15, 2017 Posted by Michael Lawson
The share price fell yesterday by 1.75%

Gambling operator Jackpotjoy recorded largely positive Q3 2017 results, with improved gaming revenues and a reduction in net losses, but still witnessed a slip in share prices yesterday.

Financial highlights for the third quarter included a 14% rise in gaming revenue in the Jackpotjoy segment and a 4% rise in adjusted EBITDA, while measures were also taken to reduce net debt.

Operating cash flow grew 78% year on year, including a working capital inflow, while adjusted net debt fell by £23.4 million.

Operational highlights for July to September included a 13% year on year increase in average active customers (up to 251, 186), an average real money gaming revenue increase of 16% per month (up to £22.6 million), and a 2% rise in monthly real money gaming revenue per average active customer.

But shares still fell narrowly by 1.75% to 842.5p. This is largely presumed to be down to the fact that the 4% growth in profit recorded for Q3 was slower than that of the rest of the year, and led to a drop in the firm’s monthly average growth for 2017 to 11%.

From a personnel perspective, Jackpotjoy’s results come after the announcement from Andy McIver detailing his decision to step down as chief executive. The company is opting to put a new management structure in place.

Neil Goulden has assumed the role of executive chairman and will assume responsibility for leading the development and execution of the firm’s long-term strategy. Meanwhile Simon Wykes will take up the position of group managing director.

Goulden remained upbeat about the situation despite the small drop in share price. He told “We are delighted with progress so far since our relisting in the UK with the share price up 40%.

“We are confident about the outcome for the full year and our new advertising campaign featuring Paddy McGuinness should deliver further momentum into 2018”

Totally Gaming says: The Q3 2017 results for Jackpotjoy are relatively positive - there is growth across the board and the measures in place to reduce net debt seem to be having an effect. However, the softened growth for the quarter has affected the firm’s share price - a cause of frustration no doubt.

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