Intertain Q3 revenues boosted by Mandalay
Canadian operator sees strong revenue growth following July's acquisition of Mandalay Media and says more deals are likely in 2015
The Intertain Group posted revenues of CA$13.6m for the three months ended 30 September with its recently acquired Mandalay Media online bingo business contributing more than half of the total group revenues.
The Canada-based firm, which also owns the InterCasino brand and recently signed a deal to acquire casino operator Vera&John, bought Costa Bingo owner Mandalay Media for $94.6m on 14 July.
Total Q3 revenues following the deal represented a 260% sequential increase on Q2, although organic growth was a more modest 17%, while full-year revenues more than doubled to $22.5m.
Adjusted EBITDA increased from $4.6m in Q2 to $6.9m in the third quarter, while unadjusted EBITDA came in at a loss of $1m with unadjusted net loss at $11.8m.
Due to the company’s formation in February 2014, no year-on-year comparisons are available.
Intertain Group CEO John Fitzgerald said the firm’s Q3 performance was “in line” with its “committed strategy of organic and acquisitive growth”, and highlighted its takeover of InterCasino and InterPoker, and Mandalay Media‘s Costa Bingo, Sing Bingo, City Bingo, Fancy Bingo and Rio Bingo sites.
“Our Mandalay Media business continues to see performance that exceeds expectations across key performance indicators, and InterCasino gross gaming revenues are improving as a result of strategic and focussed marketing,” Fitzgerald said.
Intertain’s growth strategy saw acquisition related costs increase 364% year-on-year from $1.4m in Q3 2013 to $6.5m in Q3, with costs likely to increase further due to its planned takeover of Malta-based casino operator Vera&John for $126.1m.
“We are making substantial progress with respect to our Vera&John acquisition and anticipate closing by end of 2014,” Fitzgerald said.
And he added that the firm was likely to make more acquisitions in the online gambling sector during the next year.
“We continue to see numerous, strategic and accretive acquisition opportunities that we hope to capitalize on in the coming months,” he added.