Part 1: Strictly bingo
Table 2: Tombola five-year financials
Tombola 2014 2015 2016 2017 2018
Revenue (£m) 44.2 49.8 59.5 73.7 90.3
Pre-tax profit (£m) 12.2 12 11.9 13.8 19.2
Source: Company reports
results are available via Companies House and
in the year to last April, results showed revenues
game in UK terms.
Market leader JPJ, for instance, has seen
rising 22% to £90.3m, with pre-tax profit soaring the UK’s importance at group level drop off
nearly 40% to £19.2m. significantly in recent years. With the sale of
Admittedly, these figures predate some of the
the Mandalay brands in February to rival 888,
more recent Gambling Commission instructions analysts at Numis estimated that the percentage
and the latest tax increase. Moreover, with the of revenue from the UK for JPJ fell to 50% in the
company having now diversified into games fourth quarter, compared with 66% at the time of
(albeit in a somewhat milder form than others in its UK market listing in 2017 (see table 3).
the sector) and having a presence elsewhere in
While analysts have praised the performance
Europe, we cannot precisely state what Tombola’s of the group, it is clear that it is the more gaming-
purely bingo figures are. focused (and notably ex-UK) Vera & John
Yet the company’s record of year-on-year
brand that has been the main driver. Analysts
revenue increases stands as testament to its as Canaccord Genuity pointed out that the UK
resilience (see table 2). Indeed, revenues have “remained soft”, having been impacted by “more
doubled over the past five years and the recent onerous responsible gaming requirements”.
introduction of an arcade product, deliberately
pitched at the lower-staking end of the market, The road to Mandalay
suggests the company is managing to diversify The sale of Mandalay for £18m reflects some of
without cannibalising its own market. The company the difficulties being encountered in the UK, as
suggested, in fact, that it was the arcade product well as some company-specific issues around
which lay behind the 39% rise in pre-tax profits. brand and platform. The Numis team said at the
time of the sale the multiple of 4.9 times 2018
More bingo-led EBITDA reflected a “deteriorating portfolio of
Diversification is a theme across many of the second-tier brands which have been negatively
other leading bingo-led brands, with geography impacted by regulatory headwinds”.
and product being the avenues chosen to help
mitigate what, for some, has become a losing
For JPJ, then, the sale “improves the overall
quality of the remaining business, accelerates the
Table 3: JPJ four-year financials
JPJ Group 2015 2016 2017 2018
Revenue (£m) 184.8 248.8 289.3 319.6
Adjusted EBITDA (£m) 70.4 102.2 108.6 112.7
UK share (%) 57
Bingo-led (%) 59
JackpotJoy brand (%) 68
Vera & John (%) 32
Source: Company reports
iGaming Business Market Monitor • UK bingo market, Sweden and Germany • June 2019
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