Intertain raises guidance for 2015 financials

Intertain raises guidance for 2015 financials

Wednesday, January 13, 2016 Totally Gaming
The company has endured a tough period after heavy critcism from an investment firm

Intertain has released promising guidance for its full 2015 financial results after a six-month period in which its share price has dropped by more than 50 per cent.

The Canada-based bingo operator, whose brands include Jackpotjoy, said it now expects 2015 revenue of between $365m (€337.3m) and $375m as compared to the previously reported guidance of $325-355m.

Guidance for adjusted net income has also been increased from the previous estimate of $93-106m to  $104-109m.

John Kennedy FitzGerald, president and chief executive of Intertain, said: “These changes to our 2015 guidance reflect the solid and consistent growth across our combined businesses. The company continues to generate strong cash flow from operations and we are excited about the future.”

Intertain has been a major purchaser of gaming businesses in the last two years, having bought Gamesys, Mandalay Media, Wagerlogic and Dumarca Holdings for more than $760m in total.

Intertain’s share price reached a high of 19.94USc in June 2015, but had already dropped significantly before trading on the company’s stock was suspended for 24 hours in December following severe criticism of its strategy in a 120-page report published by Spruce Point Capital Management.

The New York investment firm took major issue with the company’s performance to date and future outlook and cast aspersions on the backgrounds of senior management figures. Intertain responded by labelling the report a "misleading and self-serving" document by a self-identified short-seller of the company's shares. Intertain’s share price is currently 9.30c.

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