Adjusted figures show some improvement at Intertain

The Canadian online gambling group Intertain, which owns and operates internet properties InterCasino, InterPoker, Costa and other brands on software from Amaya and Dragonfish, has posted its latest Q3 results, highlighting:

* EBITDA at – C$1.01 million, but adjusted EBITDA of C$6.93 million in the quarter;

* Net income loss of – C$11.75 million, but adjusted net income of C$5.51 million.

The adjustment on the losses was calculated on the basis of share-based compensation, amortization, acquisition related costs, interest accretion and losses of foreign exchange forward buying.

* Revenue of C$13.6 million, with Mandalay Media online bingo operations contributing $7.9 million since its acquisition in July 2014.

For the nine months year to date, Intertain reported a net income loss of – C$13.75 million, adjusted to C$10.62 million, and EBITDA at C$863,740 adjusted to C$13.79 million.

The company flagged the following operational highlights:

* Completed a bought deal Public Offering of equity and equity-linked debt subscription receipts for C$103.5 Million, inclusive of the full exercise of the over allotment option for $13.5 million. 7.4 million equity subscription receipts were issued at $7 for total gross proceeds of C$51.2 million;

* Completed the acquisition of online bingo operator Mandalay Media Limited for up to GBP 60 million;

* Negotiated the acquisition of Dumarca Holdings Limited, operator of the “Vera&John” online casino enterprise for up to Euro 89.1 million. Vera&John operates in 11 countries and offers approximately 800 games to around 490,000 registered customers;

* Has obtained continuation licensing from the UK government, enabling the group to continue offering online gambling to British punters;

* Has accelerated expiration of warrants, providing gross proceeds of up to C$30.3 million. The Warrants will now expire on December 7, 2014.

CEO John Fitzgerald reported to shareholders:

“Our Q3 performance is in line with our committed strategy of organic and acquisitive growth. 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 focused marketing.

“We are also making substantial progress with respect to our Vera&John acquisition and anticipate closing by the end of 2014. We continued to see numerous, strategic and accretive acquisition opportunities that we hope to capitalize on in the coming months.”

Fitzgerald added that to support the acquisition strategy going forward, both management and the board of Intertain will exercise all their $5 warrants, which have an expiry of December 31, 2015, as well as their $7.75 warrants.

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