Shares of Canadian online gambling operator Intertain were up 26 percent late Monday following preliminary reports of strong gaming revenue in the third quarter of 2016.
The company said its gaming revenue rose 10 percent year-on-year to reach CAD113.5 million (USD84.60 million) in the three-month period ending September 30—a growth that Intertain said reaffirms its UK-centered strategy ahead of its London listing plan.
The Canadian gambling operator’s number of average active customers per month during the quarter climbed 11 percent to 231,000, compared to the same period last year, which totaled 208,000.
“Our strong preliminary financial results speak to the continued performance and high quality of our core business assets, particularly when considered on a constant currency basis,” Andrew McIver, Intertain’s President and CEO, said. “These results also strongly support our contention that the recent pressure on Intertain’s share price is the result of certain market circumstances and is not a reflection of the performance or prospects of the company’s underlying businesses.”
Intertain announced in July that it will proceed with “UK Strategic Initiative” plan, which essentially means putting up a new London-headquartered UK corporation that would pursue a listing on the London Stock Exchange, after failing to receive satisfactory offers to purchase the company. The Canadian company also revealed plans to rebrand as Jackpotjoy Plc once it relocated to the UK. Jackpot Plc reflects the name of the company’s popular online bingo brand, which Intertain acquired from Gamesys in 2015.
“We are working hard to complete the listing of the ordinary shares of Jackpotjoy Plc in London, England and these strong preliminary results also support our continued belief in our UK-centred strategic initiatives, including the London listing.”
Operating cash flow is forecast to be between CAD30 million and CAD32 million for the three-month period, including a one-off severance payment of CAD10.5 million to Intertain’s former president and CEO John FitzGerald, who left the company earlier this year.