Interactive

Canada – Amaya predicts that 2016 was a record year

By Phil - 23 January 2017

Amaya, owner of online poker brand PokerStars, has predicted that its 2016 results will be at the high end of the previous range and between $1,153 and $1,158m, as compared to the previous range of between $1,137 and $1,157m.

It believes adjusted EBITDA will be above the previous range and between $521 and $526m, as compared to the previous range of between $500 and $510m.

These estimates reflect management’s view of current and future market conditions, including the assumptions used to determine the previously announced guidance.

“We anticipate that 2016 will be a record year of revenues for Amaya,” said Rafi Ashkenazi, Chief Executive Officer. “We also saw better than expected fourth quarter results from our casino offering, operational excellence program and a successful re-launch in Portugal, all while continuing to take an efficient and measured approach to marketing our product offerings.

“We built positive momentum in 2016 that accelerated throughout the year and which we believe was largely the result of the positive impact of our strategy to improve the poker ecosystem for recreational players and leverage our global competitive advantage in online poker to acquire new customers, cross-sell existing and new customers into our online casino and sportsbook offerings, and maximize the lifetime value of all of our customers.

“We expect to continue this momentum and execute on our strategy in 2017 despite anticipated further headwinds, including continued declines in the value of our customers’ local currencies against the US dollar, which has been significant over the past two years, and the previously announced potential cessation of our real-money online poker offering in Australia,” noted Ashkenazi. “We anticipate that certain operational initiatives, including the introduction of a new cross-vertical customer loyalty program, the potential expansion into new markets, our continued focus on achieving product parity in our online casino and sportsbook, and our operational excellence program, will help to both drive our business forward and mitigate these and future headwinds.”

Amaya intends to announce the date and time for release of its full year 2016 financial results along with related conference call and webcast details in early March.

Total combined Quarterly Real-Money Active Uniques (QAUs) were approximately 2.6m, an increase of approximately eight per cent year-over-year. Approximately 2.5m of such QAUs played online poker during the quarter, an increase of approximately five per cent year-over-year, while Amaya’s online casino offerings had approximately 648,000 QAUs, an increase of approximately 47 per cent year-over-year, which Amaya continues to estimate is one of the largest casino player bases among its competitors. Amaya’s emerging online sportsbook offerings had approximately 247,000 QAUs, an 88 per cent increase year-over-year.

Customer Registrations increased by 2.6m during the quarter to approximately 108m at the end of the year.

Daniel Sebag has advised Amaya that he will retire as Chief Financial Officer later this year once his successor is identified and appointed, and will assist Amaya in ensuring an orderly transition of his duties. The Board of Directors has retained Spencer Stuart, a leading executive recruiting firm, to advise the Board and launch a global CFO search.

Mr. Sebag joined Amaya in 2007 as its first CFO and managed its finances and accounting as a start-up through its initial public offering and its transformation to a consumer technology company through the $4.9 billion Rational Group acquisition in August 2014.

“Danny has been a passionate and dedicated steward of Amaya’s growth into a global gaming leader and helping to position it for the future,” said Divyesh (Dave) Gadhia, Chairman of the Board. “On behalf of the company, I would like to thank him for his contributions over the years. We wish him all the best in his retirement.”

Rational Group also recently announced several new appointments to senior operational roles, including Guy Templer, as Chief Operating Officer of Rational Group (previously, Chief Strategy Officer of Rational Group), Bo Wänghammer as Managing Director of Casino Operations (previously, Business Development Director for Mr. Green & Co AB and CEO of Mr. Green’s operating company, Mr. Green Ltd.), and Zeno Ossko as Managing Director of Sportsbook Operations (previously, CEO of MyBet Holding SE).