Gamesys Group - Growth through responsible gaming

In a continuation of previous trends, Gamesys has reported a 19% increase in Q120 pro-forma revenues to £155.3m. The business has no retail or sport exposure and the first few weeks of Q220 have been strong. Geographically, Asian markets are driving growth and the UK has been solid. During the COVID-19 lockdown period, Gamesys is proactively instigating responsible gaming measures, which include ceasing all TV advertising, and the company is donating £200,000 to Women’s Aid. The stock trades at 6.2x P/E and 6.7x EV/EBITDA with an estimated 13.1% free cash flow yield for FY21.