Canadian gambling operator Intertain Group Limited reported its financial results for the third quarter ended September 30, 2015. Revenue amounted to C$119.5 million, up from the C$13.7 million posted for the same period a year ago.
The gambling company noted that revenue increased across all its businesses during the third quarter of the year. The Jackpotjoy brand generated a total of £40.7 million, up 21% as compared to the £33.6 million posted for the same quarter a year ago. Revenue from Vera&John increased 21% year-on-year to reach €12.2 million.
Intertain’s Mandalay brand generated a total of £5.4 million, up 15% year-on-year. In comparison, the business posted revenue of £4.7 million for the same quarter a year ago. InterCasino reported quarterly revenue of US$6.2 million compared to the US$5.7 million posted for the third quarter of 2014, representing a 9% increase.
The gambling company reported that it generated a total of C$41.5 million in operating cash flows during the three months ended September 30. Intertain said that it used the money to pay down its debt and to fund earn-outs related to the acquisition of Jackpotjoy.
Adjusted EBITDA amounted to C$43.7 million during the period in review. In comparison, the total amount of C$6.4 million was posted for the third quarter of 2014. Adjusted net income totaled C$35.1 million compared to C$5.5 million for the same period a year ago.
John Kennedy FitzGerald, CEO and President of Intertain, said that the third quarter of 2015 was the first full quarter with all four of the company’s brands operating together. Thus the gambling operator was able to demonstrate “cash flow power.”
The executive further noted that Intertain used the generated cash flow in order to repay its senior term debt of C$10.6 million, repurchase its stock “at accretive price”, and to fund its earn-out on the Jackpotjoy brand.
Intertain bought the business in April together with Starspins and Botemania and other related assets for the amount of £425.8 million. The said brands were formerly owned by online gaming company Gamesys. Back then, officials for the Canadian gambling operator said that the purchase was part of its strategy to further expand its operations globally and that it would most certainly add considerable cash flow to the one generated by its existing businesses.
