Amaya posts $293m annual profit following PokerStars acquisition
Toronto-based gaming giant said full-year 2014 revenues topped CA$688m and revealed plans for more M&A activity and further vertical expansion
Amaya Gaming revenues and profits more than tripled last year following its US$4.9bn acquisition of PokerStars and Full Tilt with revenues increasing 371% year-on-year to CA$688m and EBITDA up 365% to $293m.
Amaya said that growth had been driven by B2C revenue “primarily driven by PokerStars”, with its B2B arm contributing just 20% of annual revenue despite PokerStars only contributing revenue during H2.
The firm added PokerStars and Full Tilt would have contributed $1.26bn and $462m to consolidated revenues and net earnings respectively if the acquisition had taken place on January 2014.
Amaya chief executive David Baazov said that 2014 saw his firm complete its “transformation into an online consumer technology leader” following the successful integration of PokerStars and Full Tilt into the business.
The firm is looking to exit the B2B sector having completed the sale of its B2B Ongame poker network to NYX Gaming in Q4 and recently announced plans to spin-off its lottery business Diamond Game through IPO, and the sale of Cadillac Jack to Apollo Global Management.
“The strength and vitality of the platforms supported strong growth and innovation, highlighted by the launch of Spin & Go’s on PokerStars, and delivered strong consumer growth with more than 2m new customers registered during Q4.
“Additionally, we continue to expand our casino offerings, while making investments in IT and R&A to prepare for geographic and product growth,” he added.
Baazov said that moving forwards Amaya would look to acquire new customers and gain market share by expanding its B2C business into new gaming verticals, including sports betting, casino, social gaming and daily fantasy sports.
Amaya had previously planned to launch a PokerStars branded sportsbook in Q1 2015, but Baazov said that would now take place “in certain markets in the coming days” with a wider roll out planned for the rest of the year.
Baazov also said that Amaya expects to achieve its growth plans through organic development “and strategic M&A” with the gaming giant thought to be in the running to acquire all, or part of, struggling online operator bwin.party.
Amaya outlined its 2015 full-year guidance, and estimated that revenues would be between $1.6bn and $1.7bn leading to adjusted EBITDA of $670m to $715m with around 90% of revenues coming through its B2C arm.