The Intertain Group Limited
TSX : IT

The Intertain Group Limited

August 12, 2015 16:01 ET

Intertain Group Limited Announces Second Quarter 2015 Financial Results

Jackpotjoy acquisition closes; revenues up 190%, adjusted net income up 150% quarter-over-quarter

TORONTO, ONTARIO--(Marketwired - Aug. 12, 2015) - The Intertain Group Limited ("Intertain" or the "Company") (TSX:IT) today announced its financial results for the three months ended June 30, 2015. The Company has also reaffirmed its 2015 financial guidance. All amounts are stated in Canadian dollars unless otherwise noted.

Financial Highlights:

3 month period ended
June 30, 2015
$000
3 month period ended
June 30, 2014
$000
Revenue 95,240 5,668
Adjusted EBITDA (1) 32,802 2,909
Adjusted net income (2) 24,595 2,301
Basic adjusted net income per share $0.36 $0.17
Diluted adjusted net income per share $0.34 $0.16
(1) Adjusted EBITDA as defined by the Company is income before interest expense (net of interest income), income taxes, amortization, share-based compensation, debt settlement expense, Jackpotjoy depreciation charge, fair value adjustments on contingent consideration, gain on sale of intangible assets and acquisition related costs. Adjusted EBITDA is a non-IFRS measure. Reconciliation to Net Loss is included in this release.
(2) Adjusted net income as defined by the Company means income before share-based compensation, amortization on acquisition related purchase price intangibles, acquisition related costs, interest accretion, debt settlement expense, fair value adjustments on contingent consideration, and gain on sale of intangible assets. Adjusted net income is a non-IFRS measure. Reconciliation to Net Loss is included in this release.

Q2 and Subsequent Highlights:

  • Completed the Acquisition of Certain Assets of Gamesys Limited "Gamesys" for £370 Million in Cash, 7.4 Million in Intertain Common Shares Plus an Earn-Out (the "Jackpotjoy Acquisition")
    • The purchase price consisted of cash and share consideration worth approximately £425.8 million, plus certain cash earn-out payments.
    • Assets acquired include the Jackpotjoy, Starspins and Botemania brands (the "Jackpotjoy Business").
    • For the three months ended June 30, 2015, the Jackpotjoy Business generated £33 million of gross win and £12 million of EBIT and includes results as of April 9, 2015.
  • Launched Slots as Part of Bingo Offering in Spain
    • Botemania, acquired on April 8, 2015 as part of the Jackpotjoy Acquisition, became the first operator to successfully and legally launch slots in Spain on June 2, 2015.
    • Botemania was one of the first operators to receive its approved license.
  • Acquired Rights to Bingo Software Source Code from The Parlay Group of Companies ("Parlay") and the Domain Name Bingo.ca for $2.9 Million
    • Intertain will have access to Parlay's feature-rich back office system and HTML5 mobile bingo products, and has licensed additional casino, mini and side games, along with direct game integration capabilities into other CRM and content platforms.
    • The Bingo.ca domain will provide Intertain with the ability to launch a Canada-wide free-play bingo network.

"Upon the successful completion of the Jackpotjoy Acquisition in Q2 we immediately turned our attention to expanding our assets in regulated markets," said John Kennedy FitzGerald, President and CEO of Intertain. "On that point and thanks to our diligent work, we were the first licensed operator to legally launch slots in Spain through our Botemania brand. We also completed the acquisition of bingo software source code that will allow Vera&John to integrate a bingo platform and introduce additional side games into its existing platform."

Adjusted EBITDA & Adjusted Net Income for Quarter Ended June 30, 2015

3 month period ended
June 30, 2015
$000
3 month period ended
June 30, 2014
$000
Net income (loss) for the period (48,816 ) (837 )
Interest expense, net 14,063 728
Taxes 191 238
Amortization 30,378 1,065
EBITDA (4,184 ) 1,194
Share-based compensation 1,658 291
Debt settlement expense 5,692 -
Jackpotjoy depreciation charge 376
Fair value adjustments for contingent consideration 598 -
Gain on sale of intangible assets (430 ) -
Acquisition related costs 29,092 1,424
Adjusted EBITDA 32,802 2,909
Net income (loss) for the period (48,816 ) (837 )
Share-based compensation 1,658 291
Amortization of acquisition related purchase price intangibles 30,313 1,057
Acquisition related costs 29,092 1,424
Interest accretion 6,488 366
Debt settlement expense 5,692 -
Fair value adjustments for contingent consideration 598 -
Gain on sale of intangible assets (430 ) -
Adjusted Net Income 24,595 2,301
Basic Adjusted Net Income per share $0.36 $0.17
Diluted Adjusted Net Income per share $0.34 $0.16

2015 Full Year Financial Guidance

Intertain is confirming its previously announced 2015 full year financial guidance provided in its earnings release on May 13, 2015, for the quarter ended March 31, 2015, with no changes to the ranges provided nor any material changes to the assumptions used to determine the guidance.

2015 Second Quarter Financial Statements and Management's Discussion and Analysis

The financial statements, notes to the financial statements and Management's Discussion and Analysis for the three months ended June 30, 2015, will be available on the SEDAR website at www.sedar.com.

2015 Second Quarter Conference Call

A conference call to discuss Intertain's second quarter 2015 results will be held on August 12, 2015, at 5:00pm ET. John Kennedy FitzGerald, President and CEO of Intertain, and Keith Laslop, CFO, will host the call. A question-and-answer session 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 August 25, 2015 by dialing (800) 585-8367 or (416) 621-4642 and using reference number 3062905. A transcript will also be made available on Intertain's website.

About The Intertain Group Limited

Intertain is an online gaming company that provides entertainment to a global consumer base. Intertain currently offers bingo 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 Botemania www.botemania.es brands. For more information about Intertain, please visit www.intertain.com.

Disclaimer in Regards to Forward-Looking Statements and Non-IFRS Financial Measures

Certain statements included herein, including those that express management's expectations or estimates of our future performance constitute "forward-looking statements" within the meaning of applicable securities laws, including, without limitation, our statements as to guidance regarding total revenues, total adjusted net income and total adjusted diluted income. The purpose of the guidance provided herein is to enhance our disclosure and assist in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The additional key assumptions that the Company has made in connection with the forward-looking statements is that the Company will be able to successfully integrate and realize the benefits of its completed acquisitions. Investors are cautioned not to put undue reliance on forward-looking statements. Events or circumstances that could cause the actual results to differ materially from those in the forward-looking statements include general economic, business and market conditions, foreign exchange rates, governmental and regulatory actions, including changes in law or in the interpretation of laws relating to online gaming. Except as required by law, the Company does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events. Additional information identifying risks and uncertainties is contained in Intertain's filings with the Canadian securities regulators, including its annual information form dated March 31, 2015, available at www.sedar.com.

This release contains non-IFRS financial measures and are noted where used. These financial measures are commonly used to compare companies and management believes they are important measures in evaluating Intertain. However, they are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Therefore, they may not be comparable to similar measures presented by other issuers. Investors are cautioned that such measures should not be construed as alternatives to comparable IFRS measures determined in accordance with IFRS.

Contact Information

  • The Intertain Group Limited
    Amanda Brewer
    Vice President, Corporate Communications
    416 720-8150
    abrewer@intertain.com