Turismo
Intertain Announces First Quarter 2016 Financial Results, Update on Process to Enhance Shareholder Value
TORONTO, ONTARIO--(Marketwired - May 10, 2016) - ("Intertain" or the "Company") (TSX:IT)(OTCQX:ITTNF) today announced its financial results for the three months ended March 31, 2016. All amounts are stated in Canadian dollars unless otherwise noted.
Jackpotjoy generated revenues of $87.4 million in Q1 2016, representing 20% growth year over year on a constant currency basis.
Vera&John generated revenues of $25.3 million in Q1 2016, representing 53% growth year over year on a constant currency basis.
Mandalay generated revenues of $11.4 million in Q1 2016, representing 9% growth year over year on a constant currency basis.
$10 million net income, and Adjusted Net Income of $46 million after non-cash and one-time items are excluded.
70 cents of operating cash flow per share and 43 cents of net cash flow per share generated in Q1 2016.
95% conversion rate from Adjusted EBITDA to operating cash flow.
The InterCasino brand was successfully migrated and re-launched in April and is now based on Intertain's proprietary Plain Gaming platform.
The Plain Gaming platform is currently integrated with more than 30 game providers, offering over 1,000 web games and 400 mobile games.
More than 50% of Plain Gaming's current revenue is generated by mobile, a key growth target for Intertain.
In addition to leveraging a proprietary platform and increasing both the content offering and mobile access for customers, Intertain will be able to reduce costs as it will lessen the amount it pays in licensing fees to third-party suppliers.
"Intertain continues to outperform our expectations," said John Kennedy FitzGerald, President and 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."
The Special Committee is continuing to work with Canaccord Genuity, its financial advisor, and Osler, Hoskin & Harcourt, its independent legal advisor in the consideration of third party proposals to acquire all of the shares or material business units of Intertain. In recent weeks, some parties have made preliminary offers in that regard. Other parties have been conducting due diligence following the execution of nondisclosure agreements and have received management presentations. The Special Committee is evaluating all proposals on an ongoing basis and expects to provide a further update no later than the end of June.
In parallel with these ongoing discussions and in order to ensure that the Special Committee has explored the broadest range of potential value enhancing alternatives, the Special Committee has retained Credit Suisse to advise on potential advantageous scenarios including a possible migration of Intertain to a European jurisdiction and greater exposure to European capital markets. The Special Committee is receiving advice from appropriate experts and professionals on the issues relating to such scenarios, and expects to provide further updates as this analysis progresses.
The Special Committee is also progressing in its search for a new Chief Executive Officer and Chairman of the Board of Directors of the Company (the "Board"), as well as additional independent directors and has met several Europe-based candidates in connection with these positions. The credentials along with the industry experience of these candidates is impressive and the Special Committee is well advanced with the recruitment of both the Chief Executive Officer and Chairman of the Board and has also identified several prospective Europe-based independent board members with whom further discussions will be held.
David Danziger, Chairman of the Board commented, "the Board considers the Company to be significantly undervalued and is actively exploring all options to correct this. 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. We continue to progress all strategic options with the objective of timely identification of the best alternative. Of course, the excellent financial results we have announced further confirm the strength and continued growth of Intertain's main businesses and the value we believe can be unlocked for the benefit of our shareholders."
Intertain is confirming its previously announced 2016 full year financial guidance provided in its earnings release on March 9, 2016, for the quarter ended March 31, 2016, with no changes to the ranges provided nor any material changes to the assumptions used to determine the guidance.
The financial statements, notes to the financial statements and Management's Discussion and Analysis for the three months ended March 31, 2016 will be available on SEDAR at www.sedar.com as well as Intertain's website at www.intertain.com .
A conference call to discuss Intertain's first quarter 2016 results will be held on May 10, 2016 at 5:30pm ET. John Kennedy FitzGerald, President and CEO of Intertain, and Keith Laslop, CFO of Intertain, will host the call. David Danziger, Chairman of Intertain, will join Mr. FitzGerald and Mr. Laslop for a question-and-answer session that will follow the presentation.
To participate, interested parties are asked to dial (647) 788-4919 or (877) 291-4570 10 minutes prior to the scheduled start of the call. A replay of the conference call will be available until May 24, 2016 by dialing (800) 585-8367 or (416) 621-4642 and using reference number 99841855. A transcript will also be made available on Intertain's website.
Intertain is an online gaming holding company that, through its operating subsidiaries, provides entertainment to global consumer base in which such subsidiaries operate. Intertain currently offers bingo-led gaming and casino to its customers using the InterCasino www.intercasino.com , Costa www.costabingo.com , Vera&John www.verajohn.com , Jackpotjoy www.jackpotjoy.com and jackpotjoy.se, and Botemania www.botemania.es brands. For more information about Intertain, please visit www.intertain.com .
The Intertain Group Limited
Amanda Brewer
Vice President, Corporate Communications
+1 416 720-8150
abrewer@intertain.com
www.intertain.com
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