Canadian online betting firm Amaya Gaming has announced the release of its second quarter financial results, noting strong growth in revenues and touted its acquisition of PokerStars owner The Rational Group.
Key financial indicators for the quarter ending June 30th, 2014 were:
Q2-2014 revenue up 14 percent at Cdn$42.45 million (Q2-2013: Cdn$37.24), driven mainly by an increase in gaming machine sales through the Cadillac Jack subsidiary;
H1-2014 revenue rose by 11 percent to $83.65 million;
Net loss in Q2 substantially reduced y-o-y at Cdn$2.89 million (Q2-2013: Cdn$11.44 million) thanks to increased revenues and a deferred income tax recovery.
Total Q2 expenses were up 36 percent at Cdn$61.59 million, driven by non-recurring acquisition costs related mainly to the purchase of Rational Group;
Adjusted earnings at Cdn$14.3 million on margins down somewhat at 34 percent;
-1q Revised full-year guidance following the acquisition of Rational Group; anticipated revenue now in the range Cdn$669 million and Cdn$715 million (up from May 2014's guidance of Cdn$193 million to Cdn$203 million.)
Estimated adjusted earnings have also been substantially boosted to between Cdn$265 million and Cdn$285 million.
The company successfully installed its Casino Gaming System software on Bwin.Party and Cherry AB sites in Europe, and on Ultimate Gaming's New Jersey site in the USA. Rational Group's Full Tilt site has been integrated into Amaya group operations, offering the prospect of increased casino and poker action.
Commenting on his company's performance Amaya CEO David Baazov said, "The second quarter was a transformative period for Amaya as we announced and completed well ahead of schedule our acquisition of PokerStars and Full Tilt Poker, which collectively hold a healthy majority of the market share in online poker. Led by its highly experienced management team, Rational Group provides Amaya with a strong platform for growth in revenues and profitability and will be significantly accretive to our earnings.”