Amaya Gaming and Intertain Group Smashing the Indexes, more to come

Toronto, ON / ACCESSWIRE / November 27, 2014 / The online gaming space in Canada has been about the one and only sector to be in this year if you were looking for healthy returns. Amaya Gaming (AYA-TSX) and Intertain Group (IT:TSX) have both seen 500% and 250% returns respectably in 2014 on the heels of heavy M&A activity giving access to paying subscribers and significant cash flow.

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Lesser-known Imperus Technologies (LAB-TSXv) is positioning itself to give its shareholders comparable returns through similar partnerships and M&A strategy.

Recently the company announced a US$100 million deal to acquire Israeli social game developer Diwip, a top provider of multiplayer games on iOS, Android and Facebook. It gives Imperus access to 24 million active users in 220 countries and adds a steady revenue stream to the books. Diwip generated approximately $14M in EBITDA in 2013 off of $28M in revenue. Imperus is expected to grow on this revenue significantly next year through it?s online and mobile platform Casina® and its established partnerships.

One of these partnerships is with TelecomX who is to supply Imperus?s games, including CASINA® to MTN Group (MTN:SJ). MTN is one of the largest mobile telecom companies in the world with US$15 billion in revenue giving Imperus potential access to 215 million subscribers. This is 10 times the current user base of Diwip giving massive revenue growth potential by tapping into those mobile users.

Online Gaming: Growing Quickly

Gaming has taken on new dimensions in the mobile and smart device age, with adept players able to play for real money not only in a PC browser, but on tablets and smartphones too.

The sectors? fortune is clearly tied to the prevalence of mobile devices, which are making wagering effortless and portable. Amaya?s Q3 results showed that for Pokerstars, mobile represented more than half of new customer acquisitions, up from 40% in the same quarter a year ago. That?s a 10% leap from desktop to mobile in one year and it?s unlikely to reverse. Companies in this space that want to make money need to have an aggressive strategy to establish a substantial and appealing mobile presence and that?s why acquisitions like Imperus? absorption of Diwip matters.

?The acquisition of PokerStars has transformed Amaya and delivered immediate value to our shareholders while setting the stage for additional future growth,?
Amaya CEO David Baazov

Amaya?s stock rocketed nearly 4 times since their acquisition of Pokerstars and Full Tilt Poker. Intertain has more than tripled since the announcement of acquiring Mandalay Media Ltd.

Canaccord Analyst Robert Young maintains a buy rating on Amaya (AYA-TSX), with 12x 2016E EBITDA with a raised target price of $41.00. For Intertain (IT:TSX), they rate a buy with a $10.00 target, anticipating 10.1x EBITDA in 2016E.

With those multiples, it appears Imperus would be valued ~$140M post Diwip transaction giving lots of potential for shareholders to profit from its current market cap of $30M.

At writing, Amaya Gaming has a market cap of $4.9B, Intertain has a market cap of $380M and Imperus has a market cap of $30M.

Source: Venture Cap News