Gamesys Group PLC (LON:GYS), the former JPJ Group, has declared a maiden dividend and said it is trading ahead of expectations following an earning surge in its first half.
For the six months ended June 30, 2020, the FTSE 250 online gambling operator reported adjusted earnings (EBITDA) of £95mln, up 75% year-on-year, as gaming revenues jumped by 101% to £340mln.
On a pro-forma basis, reflecting the acquisition of Gamesys by JPJ in September 2019, revenue was up 27% and EBITDA rose 17%.
Gamesys said the revenue surge reflected “continued exceptional growth in Asia, as well as a strong performance in the UK. Average active players per month grew to 640,436 in the 12 month period, an increase of 14% year-on-year, while monthly real money gaming revenue per player expanded by 7% to £80.
The firm also said good trading had continued into the early part of the third quarter across its major markets, and as a result, it now expects revenues and adjusted EBITDA for the full year to be “comfortably ahead” of its prior expectations.
As a result of the strong performance, the firm declared a first interim dividend of 12p per share.
"It has been very pleasing to oversee another strong half-year performance, with reported gaming revenues doubling across the group year-on-year. Our strong brands, operational control and proprietary technology have allowed us to drive growth in established markets such as the UK, while also delivering strong results in fast-growing markets in Asia”, Gamesys chief executive Lee Fenton said in the results statement.
“At the heart of this has been our commitment to responsible gambling, which was vital during a period in which many of our players were living in lockdown. As a result, we took decisive action during the period to enhance our player protection, both through investing in new capabilities and resources, and also ceasing certain marketing activities. We believe that this enlarged and highly engaged customer base will be key to driving sustainable growth in the future, positioning us well for the exciting opportunities ahead", he added.
The shares surged 10.1% to 1,130p in early trading on Tuesday.
--Adds share price--