(Alliance News) - Gamesys Group PLC on Tuesday reported "strong" results for 2020 despite the "unprecedented" challenges set by the Covid-19 pandemic.
The London-based online bingo and casino games operator's 2020 revenue was GBP727.7 million, up 75% from GBP415.1 million in 2019. Back in January, it said it was "confident" that revenue will be at, or above, the top end of market estimates. This increase was due to ongoing "impressive" growth in Asia, as well as a "strong" performance in the UK, even with enhanced responsible gambling measures.
Gamesys's 2020 adjusted earnings before interest, tax, depreciation and amortisation was GBP206.2 million, also up 75% from GBP117.7 million in 2019. This result beats Davy Research's January expectations of adjusted Ebitda above GBP200 million, up at least 69% annually, and is above consensus of GBP197 million.
Due to its positive results, particularly in the second half of the year, Gamesys declared a 2020 final dividend of 28.0 pence per share, resulting in a total dividend for the year of 40.0p. It did not pay a dividend for 2019.
Shares in Gamesys were up 0.8% at 1,446.00p in London on Tuesday.
"Despite 2020 being a year like no other, our ongoing focus on operational execution, product innovation and responsible gambling underpinned a strong performance, with pro-forma revenues increasing by 29% and pro-forma adjusted Ebitda, up 30%. We continue to go from strength to strength in Asia, while the UK delivered strong double-digit revenue growth - all set against the backdrop of ongoing enhancements to our responsible gambling approach. We also remain excited by our prospects in North America, both in the US and Canada. Our focus on recreational customers, our differentiated brands, proprietary technology and established market positions, have attracted record numbers of players in 2020 and we believe this foundation will allow us to continue to deliver sustainable and long-term growth in the year ahead and beyond," said Chief Executive Lee Fenton.
Looking ahead, Gamesys said trading is in line with expectations following a "very good" start to 2021.
"Our sustained operational execution, robust cash generation and strong balance sheet means we remain confident about our ability to deliver significant revenue growth and to generate returns for our shareholders. We continue to support the UK government's review of the 2005 Gambling Act and call for a rigorous evidence-based approach to potential policy change that will better protect vulnerable customers while at the same time allowing the majority to continue to enjoy their play," the company said.
Additionally, Gamesys has appointed Chief People Officer Tina Southall as an executive director with immediate effect.
Southall joined Gamesys in March 2014 to lead a new People Team, and was appointed to the board in September that year. She has previously held senior roles at Vodafone Group PLC, Avis Car Rental and RAC Ltd, and is a non-executive director at 4imprint Group PLC.
By Zoe Wickens; zoewickens@alliancenews.com
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