Report

A fresh start

Jackpotjoy plc (JPJ) has market-leading brands in female-oriented gaming. Our forecast 2017/18 EBITDA growth is 6% pa, underlying cash flows are strong and leverage should reduce rapidly after a major earn-out is paid this June. The rating is very low given its regulated bias (78%) with a 2017e P/E of only 6.6x. With a new, highly experienced UK management team and debt finance now in place, we expect a re-rating towards the sector 2017e P/E average of 12.1x, which would imply a valuation of c 900p per share.
Underlying
Gamesys Group

JPJ Group is an online gaming holding company. Through its subsidiaries, Co. is engaged in providing bingo, casino and other games to its customers. Co. operates in three segments: Vera&John, which consists of the online casino operations of various brands, including Vera&John and InterCasino; Jackpotjoy, which consists of the real money and social gaming operations of the Jackpotjoy, Starspins, and Botemania brands; and The Mandalay, which consists of the operations of various online bingo websites operated off the Dragonfish platform and the operations of affiliate portal websites.

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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