Intertain raises FY15 guidance to $375m
Canadian operator says solid and consistent growth across its various business assets has led to improved full-year forecast
Intertain has raised its full-year guidance for 2015 to reflect “solid and consistent growth” across its business assets, just weeks after a damning analyst report wiped 20% off its share price.
In a trading update released yesterday, Intertain increased revenue guidance up from CAD$355m (?173m) to $375m (?182m).
The operator, which last year acquired Gamesys’ Jackpotjoy, Botemania and Starspins brands for ?425m, also raised total adjusted net income from $106m (?52m) to $109m (?53m).
“These changes to our 2015 guidance reflect the solid and consistent growth across our combined businesses,” John Kennedy FitzGerald, Intertain CEO, said.
“The company continues to generate strong cash flow from operations and we are excited about the future. I want to thank our dedicated team who have helped us to surpass our guidance this year,” he added.
The update comes shortly after New York hedge fund Spruce Point Capital published a 120-page report criticising Intertain’s strategy and financial management.
The report raised numerous questions over Intertain’s acquisitions of Mandalay Media, Vera&John, and Jackpotjoy brands, as well as the firm’s corporate governance.
Spruce Point described Intertain’s ?425m Gamesys deal as having “more holes than Swiss cheese” raising particular concerns over the licensing and earn-out agreements.
The report also alleged that Intertain has not set aside funds to cover upcoming earn-outs from its earlier acquisition of Mandalay Media and Vera&John.
In its response, Intertain said the report was “misleading and self-serving” and that it “stands behind the integrity” of its public disclosures.
Intertain’s share price was down 2.4% to $8.99 when markets closed yesterday.