Canadian online gambling operator Intertain Group turned in a record performance in Q1, leading management to consider a possible corporate move to Europe.
For the three months ending March 31, Intertain reported revenue quadrupling to C$128.5m (US $100m) and net income of $10m versus a $26m loss in Q1 2015. Intertain projects FY16 revenue to come in between $460m-$500m and net income between $140m-$160m.
Intertain reported strong revenue growth across all its recently acquired operations, with online bingo brand Jackpotjoy up 20% year-on-year to $87.4m, online casino brand Vera&John up 53% to $25.3m and bingo brand Mandalay up 9% to $11.4m.
Since the quarter ended, Intertain migrated and relaunched its shuttered InterCasino brand on the new proprietary Plain Gaming platform, which is currently integrated with over 30 game providers and powers the B2B brand Finlandia Casino.
Intertain also said it would provide an update no later than the end of June on its previously announced plans to entertain third party offers to buy the company. The Special Committee tasked with evaluating these proposals now says it’s also considering “potential advantageous scenarios including a possible migration of Intertain to a European jurisdiction and greater exposure to European capital markets.”
Some skeptics have suggested that Intertain’s proposal to shift operations to Europe reflects the company’s dissatisfaction with the takeover offers it has received to date. Speaking with analysts on Wednesday, Intertain chairman David Danziger called this suggestion “entirely untrue,” claiming that the European move had been discussed internally for some time.
Meanwhile, the Special Committee’s search to replace Intertain’s outgoing CEO John Kennedy Fitzgerald is progressing as planned, having met with “several Europe-based candidates” vying for the soon to be vacant roles of CEO, chairman and several independent directorships.
On the analyst call, Danziger was asked why a candidate for senior management would seriously consider joining a company that was shopping itself around, which could leave them out of a job if the new owners decide they want their own people in the drivers seats. Danziger insisted that there were some “very good people out there that are anxious to join us.”
Once it finishes vetting senior management candidates, weighing takeover bids and shopping for a new corporate home in Europe, perhaps Intertain’s Special Committee could be convinced to take a stab at resolving this whole Middle East thing. You know, if they have a moment.