Intertain FY15 hit $384.5m as it considers bids
Special committee established to improve shareholder value including options to divest all or part of the businessÂ
Intertainâs acquisition of Gamesysâ major bingo and gaming brands helped drive revenues to CAD$384.5 during FY15, as the company announced it is considering bids to sell part or all of its business. [private]
Despite the impressive revenue growth, the firm posted a net loss of $226.9m and an EBITDA loss of $78m for the 12 month period ended 31 December 2015.
When including $121m from âfair value adjustments for contingent considerationâ, $1.4m from FX, plus other factors, the firm said EBITDA rose to $139.5m and net income to $111.6m.
But Intertain said its board believed the companyâs share price was currently misaligned with its fundamental business results, and had established a special committee to âidentify, examine, and considerâ a range of strategic options to improve shareholder value.
The committee is made up of three directors â David Danziger, John Fielding, and Paul Pathak â with Canaccord Genuity providing financial advice.
The firm said among the options being considered were offers to acquire all or part of its assets, with interest coming from a number of potential suitors.
âCanaccord has a mandate to continue discussions with current interested parties and to contact a wide range of parties who could have an interest in exploring value-creating alternatives,â the firm added.
Intertain also broke out numbers for each of its business assets during Q4, with Jackpotjoy contributing $90.7m, up 20% YoY on a constant currency basis.
Its Vera&John division saw revenues grow 45% YoY to $22.7m, while Mandalay grew 7% YoY to $11.7m, both on a constant currency basis.
Total revenues for the fourth quarter were $137m, leading to a net income loss of $134.4m and an EBITDA loss of $88.5m.
But when adjusted, EBITDA rose to $53.2m and net income to $43.2m for the three month period ended 31 December 2015.
During the quarter, Intertain said it had entered into a currency swap agreement whereby 90% of its USD term facilityâs interest and principal payments were swapped into GBP.
As of the end of the year, the firm said it had an unrealized gain of $9.7m from the currency swap, which will end on March 31 2017.
Outgoing CEO John FitzGerald said the company had âdelivered quarter after quarterâ and the results continued to show growing value from the assets it had acquired.
âThe results show that our business is sound, that our customer base is stable and growing, and that our market position is unchanged â we are the largest bingo-led operator in the world,â he added.
Intertain also announced that former bwin.party co-CEO Jim Ryan had joined its board as an independent director, and that David Danziger had been appointed chairman with immediate effect.
The firm offered guidance on its FY16 financial performance, and expects total revenues of $500m, adjusted EBITDA of $195m and adjusted net income of $160m.
Intertainâs share price was up 4% to $9.69 when markets closed yesterday.