Interactive

UK – Jackpotjoy to float on the London Stock Exchange

By Phil - 20 September 2016

Jackpotjoy has announced its intention to float on the London Stock Exchange in mid-October 2016 in a move that will also see it become the parent company of the Intertain Group.

The new group will be chaired by Neil Goulden, who said:”I am delighted to be chairing the Jackpotjoy board at this exciting point in the company’s history. Under Andrew McIver’s leadership, supported by Keith Laslop, and with a high-calibre management team and a well-balanced board, Jackpotjoy is now seeking to comply with the highest standards of UK corporate governance. Accordingly we will also voluntarily comply with certain investor protection mechanisms as if a UK premium-listed company, ensuring that we now have the right corporate governance structure in place to take the company into its next phase of growth.”

The Intertain Group stated: “Following the conclusion of a strategic review process, Intertain’s Board of Directors has determined to pursue a listing in the UK – The Board of Directors believes that the UK is the natural home for the Group and a UK listing would provide access to a large, liquid and international market that is home to a significant number of the Group’s online gaming peers.”
A listing in London is also expected to provide the Group with greater exposure to an investor and analyst community with significant gaming sector experience, which is anticipated to result in a broader and deeper market for the company’s shares, contributing to a more appropriate valuation of the Group’s business over time.

Through its multi-award winning online bingo and casino businesses, the group lays claim to being the No.1 bingo-led operator globally, offering an industry leading level of player liquidity, meaning more frequent games, lower waiting times, more winners and higher jackpots, which translate into higher customer retention and significant new customer wins. In the first six months of 2016, 72 per cent of revenue was generated from the group’s bingo-led offering, with 79 per cent of revenue being generated in regulated European markets, including 66 per cent in the UK. The UK is the group’s core customer market, where it enjoyed a market-leading 27 per cent share of the online bingo market in 2015.

The Group continues to trade strongly, building on its market-leading 27% share of the UK online bingo market. In the first half of 2016, the Group delivered revenue growth of 23 per cent, adjusted EBITDA growth of 57 per cent and an adjusted EBITDA margin of 39 per cent.

Two experienced and UK-based independent non-executive directors, Colin Sturgeon and Nigel Brewster, both of whom have held a number of board level positions, will join the Board of Directors on Admission – Intertain also announced today additional non-competition covenants and amendments to the long-term operating and other agreements between the Group and the Gamesys group. The Gamesys group is the platform and service provider to the Group’s Jackpotjoy business.

Intertain added: “The Group’s aim is to generate long term value for its stakeholders and design a shareholder distribution policy that reflects the growth prospects and profitability of the Group. The Board is confident in the Group’s prospects and sees a number of exciting opportunities for growth, including the development of its multi-platform offerings, further gains in market share in core markets and expansion into newly-regulating gaming jurisdictions.”
Within each of its online businesses, the Group operates trusted, well-recognised branded sites, including: Jackpotjoy, Botemania, Starspins, and the Jackpotjoy and Starspins Social sites, which are part of the bingo-led Jackpotjoy business; Vera&John, Vera&Juan, and InterCasino, which are part of the online casino Vera&John business; and Costa Bingo and Sing Bingo, which are part of the bingo-led Mandalay business.

The Group’s average active monthly users, totalling approximately 224,000 per month on average in the first six months of 2016, enjoy a wide variety of online bingo offerings and a vibrant online community that secure high levels of brand loyalty and customer retention. Through the Jackpotjoy brand, the Group owns the leading online bingo site in the world.