(Alliance News) - Gamesys Group PLC on Tuesday reported a "strong" performance in a transformational year for the online gaming firm.
Gamesys began operating in its current guise in the autumn of 2019. It was formed by JPJ Group's GBP490 million purchase of Gamesys Holdings Ltd.
Gaming revenue in 2019 was 35% higher at GBP415.1 million, though proforma, taking into account the combination, it was 15% higher at GBP565.3 million.
Gamesys said the strong revenue growth was driven by good organic performance in the UK and Asia.
London-based Gamesys's net pretax income on a reported basis declined by 39% to GBP12.0 million due in part to a significant rise in distribution costs.
The company does not currently pay a dividend and is currently focused on getting its leverage ratio to between 1 times and 2 times adjusted earnings before interest, tax, depreciation and amortisation. The figure was 2.8 times at the end of December, with adjusted net debt GBP450.3 million.
"I am delighted with Gamesys Group's strong financial performance in 2019, particularly given the significant work undertaken around the acquisition and integration of the legacy Gamesys business," said Chief Executive Lee Fenton.
"Proforma revenue grew 15% delivered by growth the UK, Asia and North America, slightly offset by a decline in Europe, mainly due to regulatory developments in Sweden. It was particularly pleasing to see the UK return to moderate growth in 2019 as we annualised the introduction of enhanced responsible gambling measures and we expect to see similar trends in 2020."
Looking ahead, Gamesys said: "Following a good start to the current financial year, the group is trading in line with expectations.
"With respect to the fast-changing situation concerning Covid-19, our priority is the health and wellbeing of our employees and ensuring the necessary structures are in place to maintain business continuity. We will continue to monitor the situation carefully and provide a further update on first-quarter trading in May."
Shares were 0.5% lower on Tuesday morning in London at 528.55 pence each.
By George Collard; georgecollard@alliancenews.com
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