Amaya, PokerStars Parent, Posts Record Profit for 3rd Quarter
MONTREAL – (Canadian Press) - Amaya Gaming Group Inc. posted record results in the third quarter as its revenues and adjusted profit surged following the August acquisition of PokerStars and other online games.
The Montreal-based company (TSX:AYA) beat expectations as its adjusted profit increased 10-fold to nearly $70 million, or 43 cents per share for the period ended Sept. 30. That compared to $6.8 million or seven cents per share a year earlier.
Including one-time items such as $12.1 million in acquisition-related costs and a $9 million impairment charge, Amaya lost $17.6 million, compared to a $3.5 million loss a year earlier.
Revenues were $239 million, up from $38.6 million a year earlier.
Amaya was expected to earn 15 cents per share in adjusted profts on $232.7 million of revenues according to analysts polled by Thomson Reuters.
Chairman and CEO David Baazov said the acquisition of PokerStars has transformed the company, setting the stage for future growth.
The company has said it is looking to sell video slot machine subsidiary Cadillac Jack Inc. and announced on Friday an agreement to sell Ongame poker to NYX Gaming Group Ltd.
During the third quarter, Amaya said its adjusted pre-tax operating earnings (EBITDA) were $103.4 million, compared to $18.24 million in the prior year.
The company said it expects results will be even stronger in the busier fourth quarter, driving full-year revenues to the high end of the range of $669 million to $715 million and adjusted EBITDA of $265 million to $285 million.
Amaya was added to the S&P/TSX Composite Index in September, joining Canada’s largest businesses on the 250-company index. It is also preparing to add a listing either on the London or New York stock exchanges.
In addition to Cadillac Jack, Amaya is the owner of the Rational Group, which owns and operates PokerStars, Full Tilt, the European Poker Tour, PokerStars Caribbean Adventure, Latin American Poker Tour and the Asia Pacific Poker Tour.
On the Toronto Stock Exchange, Amaya’s shares gained 63 cents or 1.8 per cent at $35.47 in Friday morning trading.
