Can Canadian gaming operator Intertain Group go one single quarter without making a major acquisition?
That’s the Mission: (Apparently) Impossible facing Intertain CEO John Kennedy Fitzgerald (pictured) after the company reported a C$48.8m (US $37.6m) loss in the three months ending June 30.
Costs directly related to Intertain’s ‘hungry hungry hippo’ approach to acquisitions were responsible for C$29.1m of that loss, while interest expenses came to C$14m and debt settlement expenses hit C$5.7m.
On the plus side, the additions of online bingo operator Mandalay Media, Nordic online casino Vera&John, Gamesys’ Jackpotjoy and Botemania bingo brands plus rights to the Parlay Group’s bingo software did push Q2 revenue to C$95.2m compared to just C$5.7m in the same period a year earlier, while adjusted earnings and net income were both up over tenfold to C$32.8m and C$24.6m respectively. On a sequential basis, revenue was up 190% and adjusted net income rose 150%.
Fitzgerald said that following the Jackpotjoy acquisition in Q2, Intertain “immediately turned our attention to expanding our assets in regulated markets.” Part of this expansion involved ensuring that Botemania was the first Spanish-licensed operator to launch online slots in June.
Looking forward, Fitzgerald says Intertain sees no need to adjust its previously issued guidance for full year earnings, which suggests that Intertain has no immediate plans to join the bidding war for Bwin.party or attempt to buy Google or something. Your mission, Mr. Fitzgerald, should you choose to accept it, will be to resist the siren song of the mergers & acquisitions market for another six weeks.