Intertain Group add online bingo with purchase of Mandalay Media
The Intertain Group is one of the biggest names in online poker and casino games through its Cryptologic subsidiary. Players may be familiar with the InterCasino and InterPoker brands. What didn’t fare quite so well was the InterBingo brand, which currently only offers an autoplay free bingo game.\r\n\r\nAll that is about to change with the purchase of Mandalay Media for a reported £45 million, with another £15 million payment on top a possibility due to an inbuilt clause relating to future profitability. As the brands now at the disposal of Intertain include Costa Bingo, Sing Bingo, City Bingo, Fancy Bingo and bgo.com and new site Rio Bingo that payment is almost guaranteed.\r\n\r\nMandalay also has a toe in the affiliate market for both casino and bingo businesses through Casino Choice and Ignite. Mandalay has over 1 million users of its bingo sites acquired since launch in 2009 and it has collected in the region of £120 million in deposits.\r\n\r\nIntertain is confident that those numbers can still be improved upon thanks to the ongoing benefits of the advertising campaigns put in place this year by Mandalay for its Costa Bingo and bgo brands featuring ex-Spice Girl MelB and actor Verne Troyer respectively.\r\n\r\nJohn Kennedy FitzGerald, CEO of Intertain commented: “We are excited about the acquisition of Mandalay Media, which will add substantial free cash flow to our existing business. As we have previously stated, bingo and sports betting are a key verticals missing from our current gaming platform supplied by Amaya Gaming Group Inc. This bingo acquisition will add a missing gaming vertical, a bingo-focused marketing team, diversify our current casino offering and is expected to be materially accretive to earnings per share and free cash flow.”\r\n\r\nHe went on, “In addition to these important milestones, our existing brand, InterBingo(TM) will now have a leading bingo platform to reside. The timing of this acquisition is also advantageous as we are acquiring the business at the end of Mandalay’s robust marketing campaign undertaken and paid for by the vendors, the benefits from which we believe have yet to be reflected in revenue and earnings. Over 98% of the Bingo Business’ revenue is generated from the UK, which is consistent with our strategy of growing our customer base in regulated markets.”\r\n\r\nDragonfish is the main software provider to Mandalay. The exception is in its Ignite business that powers bgo.com which operates on its own standalone platform and could well be the one that Intertain adopts for a new InterBingo site.