Competition is always good for customers but companies have a very tough time dealing with it because it invariably involves increased costs and lower profits. The online gambling industry is a very competitive one and companies find it very difficult to stay afloat, leave along show the required rate of growth that their shareholders are expecting. Many gambling companies go down the route of mergers and acquisitions to fuel their growth. However, this is also a very risky route because of the immense costs involved. The gambling industry is replete with stories of mega mergers and takeovers that result in the formation of gigantic entities.
Like many other companies in the gambling industry, Intertain Group Limited has also taken part in many mergers and acquisitions in order to establish itself at the head of the pack of online gaming businesses. The Canadian firm, which is a well-established operator in the industry and provides a wide range of gambling related entertainment to customers located all over the world is also doing the same thing.
Intertain was founded by former Amaya executives who clearly decided to follow the bigger company’s playbook. It started off its campaign to expand itself in 2014 when it purchased the InterCasino brands from fellow Canadian gaming company Amaya Inc and it has followed this aggressive path in many other instances. The company followed up the InterCasino deal with the acquisition of Mandalay Media Group which is the owner of many popular bingo websites in the United Kingdom. Next came the acquisition of global online casino Vera & John that owns three major brands, Vera & John, Vera & John Social and Vera & Juan. Intertain rounded off its portfolio by purchasing three mega B2C brands from industry giant Gamesys Ltd in a deal worth £425.8 million. These brands were Botemania, Jackpotjoy and Starspins and they gave the company an edge in the highly competitive and lucrative UK gambling market.
Intertrain’s has had a mixed year in 2015 as its reported figures indicate. The company showed a robust increase in revenues for 2015 but this came at very high costs so much so that it made a loss of CND $134.4 million for Q4 and of CND $227 million for the entire year. These figured are indeed capable of rattling shareholders but the company has disclosed that it has received many takeover bids. As a matter of fact, the company’s share price jumped by a fifth upon its release of a statement to this effect.
Intertain’s CEO John Kennedy Fitzgerald who is expected to step down very soon said that the company’s steady growth across various segments indicated that it had a very strong customer base. As a matter of fact, the company expects to do very good business in 2016 and is looking at revenues approaching a very respectable figure of CND $500 million. The company is also seeing a shakeup of its senior management and might have to undergo complete restructuring in order help it continue performing up to shareholder expectations.