Online bingo provider Jackpotjoy (JPJ) is up 3% to 686.7p as it enjoys a strong performance in the first half of the year.

This is underpinned by an 18% sales increase in the core Jackpotjoy operation to £52.3m, representing 70% of overall revenue.

Overall sales are up 13% to £146.6m and are expected to hit £296.8m by the end of 2017.

This has boosted adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) by 28% to £30m in the quarter to 30 June, reflecting strong growth in all divisions.

Jackpotjoy is confident of robust top-line growth through the second half of the year, although the company reiterated profitability will be impacted due to the new UK point-of-consumption tax.

Jackpotjoy graph

Canaccord Genuity’s Simon Davies is optimistic about the firm’s outlook, flagging the Jackpotjoy division as the ‘key growth engine’.

‘Jackpotjoy has continued to deliver against its targets, with premium growth demonstrating the strength of the core brand, and stickiness of the customer base’ comments the analyst.

He believes that Jackpotjoy has several catalysts it can take advantage of, including deleveraging its balance sheet, market share gains in its core division and regulatory changes.

The company currently trades on a forecast 6.5 times forecast earnings per share for the year to 31 December 2018.

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Issue Date: 15 Aug 2017