Vera&John helps boost Intertain revenues
Canadian firm's Q1 revenues increase to CA$32.8m (£17.4m) but increased spending also leads to heavy losses
Intertain’s acquisition spree drove a sharp increase in year-on-year Q1 revenues, however related costs hit its bottom line with the Toronto-listed firm reporting EBITDA losses of CA$15.27m (£8.1m).
After acquiring online casino Vera&John in December, Intertain’s revenues shot up 947% to $32.8m (£17.4m) versus the first three months of 2014.
But costs related to the acquisition, coupled with its recent takeover of Gamesys’ Jackpotjoy, Botemania, and Starspins brands, led to net income losses of $26.2m (£13.9m).
However, the firm did report a positive EBITDA, after adjustments for acquisition costs, of $10.9m (£5.8m), up 445% year-on-year.
“It’s been an exciting quarter for Intertain, and our results include a full cycle from our Vera&John acquisition which closed 23 December 2014,” John Kennedy FitzGerald, Intertain’s CEO and president, said.
“During Q1 we worked tirelessly to close the Jackpotjoy acquisition and feel that we are now in a position, with our assets, to begin executing our global growth strategy, specifically focusing on the female demographic and on regulated markets,” he added.
The company also reported that Jackpotjoy generated £13.9m of EBIT in Q1, and the impact of its acquisition on profits should be reflected in the company’s Q2 results.
Intertain’s share price topped C$18 for the first time on release of the results, but settled at C$17.59 by the end of the day.