The good things come to those who wait. Better-than-expected interim results earlier this month, strong cash flow and – best of all – a maiden dividend all suggest that the investment case for Gamesys, the online gaming operator, is coming together nicely and that there could be further gains to come.
This column must admit that it first assessed the firm in October 2017 with a degree of trepidation, thanks to its debt pile, a name change (to JackpotJoy from Intertain), a shift in stock market listing (to London from Toronto), an acquisitive history and the knowledge that some investors would shy away from gambling and gaming over ethical concerns or fears of tighter regulation in Britain.
It has not been dull since, either. There have been two more name changes, tax increases in Britain and another acquisition but that June 2019 deal does appear to have been a good one.
Still operating under the name JackpotJoy, the company struck a £490m cash-and-stock deal to acquire Gamesys, a platform software provider, bringing in new brand licences, a wider range of games, executive expertise and the new group name, while eliminating the concern that the target could become a competitor rather than a supplier.