Amaya Releases Third Quarter Financials; Gets Offer From Former CEO

Canadian betting group Amaya Inc. has announced their third quarter 2016 financial results and also revealed that the company's former CEO has submitted a $3.48 billion offer to purchase the company.

Key financial highlights for the third quarter ending September 30th, 2016 were:

  • A 9.5% increase in total revenues to $270.85 million (Q3/2015: $247.3 million)
  • Real-money online poker revenues of $196.8 million, a decrease of 1.3% which, despite a year-over-year decline, was a strong improvement on the 7.8% decline recorded by the firm in July. Amaya attributes narrowing the gap to its focus on recreational poker, changes in its loyalty program and tweeks to its rake structure.
  • Real-money online poker revenues and real-money online casino and sportsbook combined revenues represented approximately 73% and 24% of total revenues for the quarter, respectively, compared to approximately 81% and 15% for the prior year period.
  • Total combined Quarterly Real-Money Active Uniques (QAU's) were around 2.4 million, an increase of 5% year-over-year.
  • Of those total QAU's, approximately 2.3 million played online poker during the quarter, an increase of around 3% year-over-year.
  • Amaya reported 486,000 QAU's regarding its online casino offer, a 40% increase year-over-year, saying it estimates its player base to be one of the largest among its competitors.
  • Amaya's emerging online sportsbook offerings had approximately 232,000 QAU's, representing a significant increase year-over-year.
  • Total Quarterly Net Yield (QNY) was $111, an increase of 4.2% year-over-year.
  • Customer Registrations increased by 1.9 million to approximately 105.5 million at the end of the quarter.

Amaya also revealed that former CEO David Baazov has submitted an offer of $3.48 billion in an effort to take the company private once again. Baazov oversaw many of the company's large deals, including a purchase of PokerStars parent Rational Group. He was forced out amid an insider trading probe related to that purchase.

Commenting on the company's third quarter results Amaya CEO Rafi Ashkenazi said, "As we have concluded the strategic review process, we are excited to continue focusing on improving the company and our operations. We continued to execute on our four strategic priorities during the quarter as evidenced by our strong performance."

"I am particularly pleased with our core poker business as we believe the proactive changes we made to our poker ecosystem have both substantially offset and began to reverse certain negative trends facing that business. We plan to continue leveraging this positive momentum into our casino and sportsbook offerings as we focus on becoming the world's favorite online gaming destination and maximizing winning moments for all of our customers."

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bgsharpe
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30 November 2016 - 12:17am
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Obviously Baazov is keen to take full control of the company by buying it and we'll see if he will succeed in the end, that promising to be a good story I guess.