London-listed online gambling firm Jackpotjoy reported an 11 per cent rise in revenue to £74.1m for the first quarter of 2017, but failed to shift its debt pile.
In its first earnings announcement covering the period since its IPO on the London Stock Exchange in January, Jackpotjoy posted a pre-tax loss of £15.3m compared to income of £5m in the same period last year.
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By 31 March this year, Jackpotjoy had adjusted net debt of over £407m, roughly the same as the figure at the end of 2016 (£408m).
But revenue grew as the number of users grew 15 per cent year-on-year to almost 240,000, while the average spend was up by 2 per cent to £87.
Jackpotjoy shares were trading up 4.56 per cent at 596p on Tuesday.
Accompanying commentary from the company’s management stated that the fall in income could be primarily attributed to higher fair value adjustments this year, which cost £12.9m in the first quarter of 2017 as opposed to £1.7m in 2016, as well as interest on debt.
Management also reiterated that the company expects revenue in line with market growth rates, and even pointed to a brief reprieve which could protect their margins.
“Although there will be an impact on margin from the introduction of the point-of-consumption tax on bonuses in the UK, due to commence in August 2017, this may now be delayed given the forthcoming UK general election.”
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