INTERTAIN ACQUISITIONS BUILD THE FIRM'S DEBT BURDEN
13th March, 2015 at 04:44:35
But management is confident that solid acquisitions will generate future profitability.
Intertain Group, a Canadian online gambling company closely associated with Amaya Gaming (the latter holds a 5.8% interest in the company) has posted an interesting set of 2014 annual results showcasing revenues from a zero base up at $40.8 million but a heavy debt burden as a result of a series of major acquisitions.
Intertain points out that since 2013 it has acquired Wagerlogic's Intercasino
for $70 million; Mandalay Media for $45 million; and Vera&John for $89 million, all of which are now contributing revenues at $22 million, $17.2 million and $1.6 million respectively.
Adjusted EBITDA for 2014 came in at $20 million, but the drain of acquisition expenses imposed a $26 million loss on the group, which management says is likely to grow following the recent agreement to buy Gamesys brands Jackpotjoy and Botemania for a massive £ 425 million.
Chief executive officer John Fitzgerald is undaunted by the prospect, saying in his report to shareholders that the deals were part of the company's acquisitive strategy to become the world's largest online gambling group focused on the female demographic, and would bear profitable fruit in the future.
The detailed Intertain results can be accessed here:
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