JPJ targets less than 50% of revenues from the UK
Bingo-led firm sees UK growth slow down thanks to increasing regulatory and competitive pressures
JPJ Group aims to get less than half of its revenues from the UK over the long-term, according to group executive chairman Neil Goulden.
The bingo-led operator saw a slowdown in growth in its core UK market to around 3% in H1, as UK revenues fell from 62% of the overall mix to 60%.
And speaking exclusively to EGR, Goulden said that number would continue to drop.
“I would like to see us getting less than half our earnings from the UK. But that’s not by taking down the UK, that’s by growing elsewhere. We are strong in Spain and Sweden, and growing significantly in Denmark, Germany and Switzerland and the Far East.”
When asked about reasons for the UK slowdown, Goulden pointed to tightening regulatory pressures, including more responsible gambling and AML measures being implemented by the operator.
“[AML checks] can be a bit of a blunt instrument,” Goudlen said. “We’re not whinging or moaning but if you’re a responsible gambler with plenty of cash it’s a bit intrusive asking you to send us a bank statement.”
The firm’s revenue mix coming from ‘Rest of Europe’ increased from 13% to 17%, largely driven by Spain growth according to Regulus Partners, while Rest of World mix increased from 13% to 15%.
“Growth in key markets has become significantly more challenging,” noted Regulus. “Part of this is certainly sector maturity…but a bigger part is competitive changes– with ‘third generation’ gaming operators and best-of-breed betting operators growing gaming share at the expense of less agile competitors.”