Gamesys Group PLC (LON:GYS) said cash generation continued to be strong as revenue growth slowed slightly in the third quarter.
The FTSE 250-listed online bingo and casino games operator reported revenue of £190mln in the three months to end-September, up 31% on a pro forma basis versus last year, and after 35% in the second quarter and 19% in the first.
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Revenue growth was up in high double-digits in Asia, the UK was said to be “very solid”, Spain “continued to make progress” and the US saw “healthy double-digit” growth.
The quarter saw the good momentum for 'Monopoly Casino' in Spain, which Gamesys said was “one of the most successful new brand initiatives in the history of the group”, while in the UK there was said to be strong growth for another new brand 'Rainbow Riches Casino'.
Cash flow generation saw the net debt leverage ratio fall to below 2.1 times from 2.27x at the end of the first half, meaning the cost of borrowing fell by another 25 basis points.
“Our strong cashflows will continue to provide opportunities to deliver value to shareholders through investment in growth, a pay-down of debt, a progressive dividend policy and potential share buybacks,” the company said.
Directors reported a “good start” has been made in the fourth quarter with trends so far broadly in line with those experienced in the first nine months of 2020.