Jackpotjoy’s revenue growth undone by higher interest costs

UK-listed online gambling and bingo operator Jackpotjoy Group reported double-digit revenue gains in the first quarter of 2017 thanks to solid customer growth across its brands.

Jackpotjoy, until recently known as the Intertain Group, reported revenue of £71.4m in the three months ending March 31, 11% higher than the same period last year. While adjusted earnings nudged up £1.2m to £29.3m, the company booked a net loss of £15.3m for the quarter due to rising interest costs on its significant debt load (£407m at the end of Q1).

The company’s flagship Jackpotjoy brand, which accounted for 71% of group revenue, reported revenue up 14% to £50.7m thanks to “significant” growth in its Starspins and Botemania brands, which helped offset declines in its social gaming operations.

The Vera&John online casino brand saw revenue rise 13% to £15.7m, representing 22% of group revenue. The Mandalay bingo brand reported a 14% revenue decline to £5m, which the company blamed on changes to its promotional spending and an unfortunate comparison with Mandalay’s record quarterly performance in Q1 2016.