Intertain Q1 revenues quadruple following acquisitions

Toronto-listed firm also reveals potential relocation to Europe

 

Intertain last night reported a near quadrupling of Q1 revenues over the same period last year, driven by acquisitions and growth in the intervening period.

For the three months ended 31 March 2016, the firm recorded revenues of C$128.5m (£69m) up from $33m (£18m) last year.

The bulk of the growth came from the newly-acquired Jackpotjoy, which generated revenues of $87.4m (£45.3m) in Q1, representing 20% growth year-on-year on a constant currency basis.

Intertain’s online casino Vera&John grew 53% year-on-year with Q1 revenues of $25.3m (£13.6m), while its Mandalay brand, which operates a variety of bingo sites, grew 9% to $11.4m (£6.1m).

No individual figures were broken out for the InterCasino brand, which was successfully migrated onto Intertain’s proprietary Plain Gaming platform and re-launched in April.

The boost in revenues across the board meant Intertain posted net income for the quarter of almost $10m (£5.6m) after losing more than $26m last year (£14m).

“Intertain continues to outperform our expectations,” said John Kennedy FitzGerald, CEO of Intertain. “We remain focused on the execution of our plans in order to continue to deliver great results and value to our shareholders.”

For the full financial year, Intertain offered guidance of $460-$500m for revenue with net income of $140m to $160m.

The firm also provided an update on its special committee process to improve shareholder value and said it is still evaluating third party bids for the company as well as a potential move to Europe.

“The Board considers the Company to be significantly undervalued and is actively exploring all options to correct this,” said David Danziger, chairman of the board.

“We are pleased by the considerable interest shown by third parties in pursuing a value enhancing strategic transaction with Intertain. Similarly, if we conclude that a sale is not the most advantageous option for the business, we are confident that we will have a talented management team to drive the strategy of Intertain going forward, particularly with the prospect of a potential migration of Intertain and increased exposure of Intertain to European capital markets.”