David Baazov, chairman and chief executive of Amaya, has revealed the company was able to achieve widespread year-on-year financial growth during the three months through to September 30, despite having to contend with various “global challenges”.
Revenue in the third quarter totalled CAN$324.7 million (€227.9 million/$245 million), which represents an increase of 8% on the CAN$299.5 million posted in the corresponding period last year.
Amaya said online casino accounted for approximately 13% of total revenue, with the remainder almost entirely from its real-money poker services.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 8% year-on-year to CAN$141.7 million, while adjusted net earnings also hiked 13% to CAN$90.5 million.
Adjusted net earnings per diluted share for the quarter stood at CAN$0.44, up 16% from CAN$0.38 in the same period last year.
Amaya also noted that as a result of its positive performance in the third quarter, its revenue for the nine months through to the end of September now stands at CAN$981.5 million, up from CAN$924.2 million last year.
Adjusted EBITDA is up from CAN$378.5 million to CAN$420.7 million, while adjusted net earnings have also increased from CAN$218.7 million to CAN$260.9 million.
Adjusted net earnings per diluted share for the nine months of the year stands at CAN$1.25, up from CAN$1.05 at the same point in 2014.
“Since Amaya’s acquisition of its B2C business, we have consistently delivered shareholder value,” said.
“And, despite multiple recent global challenges to our core business, we believe we are well positioned to increase our cash flow and continue to grow our customer base in 2016 through a number of initiatives.”
Amaya also announced that it has revised its previously announced full-year guidance provided in its earnings release in May.
Revenue guidance for the full year has been changed from an initial estimate of between CAN1.4 billion and CAN$1.6 billion to CAN$1.2 billion and CAN$1.3 billion.
Estimated adjusted EBITDA has now been lowered to between CAN$552 million and CAN$572 million, while net earnings are expected to come in at between CAN$345 million and CAN$365 million.
“The general strengthening of the US dollar relative to certain foreign currencies, primarily the Euro, has resulted in an approximate 19% decline in the purchasing power of our customer base and has had a significant negative impact on our revenues, higher than we previously anticipated,” Baazov said.
“Other factors negatively impacting our previously anticipated revenues included a recent strategic decision to delay the rollout of significant aspects of our new online sportsbook offering across geographies while we enhance the consumer product experience and complete the product offering, as well as the temporary cessation of our operations in Portugal and Greece.
“Due to this anticipated decline in revenues, we are also projecting less adjusted EBITDA and pro forma adjusted net earnings than our previous guidance.”
source : www.igamingbusiness.com
