Jackpotjoy PLC has narrowed its losses in the first quarter of 2018, due in no small part to the growth of its popular online casino brand, Vera & John Casino.Figured released by the UK-listed company last year show that overall gaming revenue has risen by 13% to over £80 million, while adjusted earnings fell to £27.1m, a drop of 7% year on year.
Expenses
Jackpotjoy explained away the losses by saying the decrease in adjusted earnings was due to increased marketing expenses and new taxes in the UK that took effect at the end of 2017.The increase in net gain is thought to be down to the renegotiation of Jackpotoy’s hefty debt load during the final quarter of 2017.
Vera & John
The Nordic-facing only casino brand Vera & John, which has made quite the name for itself as an online casino for those looking for something different, accounted for 26% of the group‘s total revenue in the first quarter of 2018, with reported growth in the same time period being at 35%.The likes of Mandalay and Botemania bingo sites and the Starspins casino brand recorded growth of 7% for Q1.
Momentum
With active customers every month also up 7%, to almost 257,000, and monthly gaming revenue per customer up by 9% to £95, there is optimism around Jackpotjoy, with Executive Chairmen Neil Goulden saying that the first quarter numbers represented “a continuation in the good underlying momentum” that had started in 2017.Reducing debt is a “key strategic target” for Jackpotjoy, despite the debt down only £7.4m, to £379.9m, at the end of Q1 of 2018.The earnout period for Botemania is now up, and the last payment to Gamesys for the brand will be made in June, when the company is expected to de-leverage quickly.