Management claims strong Q3 performance as work continues on a proposed London listing for Jackpotjoy
The Canada-based Intertain online gambling group has released its Q3-2016 preliminary results, claiming a strong performance and confirming its full year guidance numbers.
The update boosted the company's shares more than 26 percent on the Toronto stock exchange Monday afternoon.
CEO Andrew McIver advised shareholders that work is ongoing regarding the company's intention to list Jackpotjoy on the London exchange, and reported the following preliminary third quarter numbers;
* Gaming revenue up ten percent at approximately Cdn$113.5 million for the three months, and approximately Cdn$357 million for the nine months ended September 30, 2016. On a constant currency basis, these figures represent an expected y-o-y increase in gaming revenue of 10 percent and 18 percent (on a pro forma basis), respectively;
* Operating cash flow of between Cdn$30 million and Cdn$32 million for the three months and between Cdn$116 million and Cdn$118 million for the nine months ended September 30. Included in the operating cash flow for the quarter is a one-time severance payment of Cdn$10.5 million to Intertain's former President and CEO John Kennedy Fitzgerald;
* Average Active Customers per month of 231,000, as compared to 208,000 for the quarter ended September 30, 2015, representing an expected increase of 11 percent.
McIver noted, "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.
"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.
"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."
Intertain's 2016 FY financial guidance includes:
* Total revenue of Cdn$460 million to Cdn$500 million;
* Total Adjusted EBITDA of Cdn$175 million to Cdn$195 million;
* Total Adjusted Net Income of Cdn$140 million to Cdn$160 million;
* Diluted Adjusted Net Income Per Share of Cdn$1.87 to Cdn$2.13.
The update did not include details of Intertain's debt burden, which has reportedly been a source of concern to some investors.
Intertain currently offers bingo and casino games to its customers through well-known brands like InterCasino, Costa, Vera&John, Jackpotjoy, Starspins and Botemania.
Online Casino News Courtesy of Infopowa