Amaya chief bullish on US prospects despite increased losses
Software provider's acquisitions boost revenues but increased costs lead to CA$7.4m loss
Amaya Gaming is “well positioned” to capitalise on the “evolving” US regulatory landscape despite losses rising by 60% to CA$7.4m in the three months ended 31 May, according to the Canadian software company’s chief executive David Baazov.
The firm saw revenues soar by 496% year-on-year to $38.1m, with the figure inflated by the acquisitions of land-based slots business Cadillac Jack and online poker network Ongame.
However costs associated with those two acquisitions, as well as recently acquired online divisions CryptoLogic and Chartwell, meant Amaya posted a loss of $7.4m for the period compared to $4.6m in Q1 2012.
The figures were published a month after the firm’s announced a $7.11m loss in its full-year results for 2012, which was attributed to the increase in staff through its acquisitions and increased costs due to amortisation costs and employee contract terminations.
Baazov noted the integrations of Amaya and Cadillac Jack will continue this year, but said the group “will continue to focus on realizing on anticipated revenue and cost synergies from these additions throughout the rest of this year”.
Parlay and Tokwiro veteran Paul Leggett has been brought in to manage the integration of the three online divisions, and since his appointment Ongame has agreed deals in the US and Europe.
Nevada licensee Aristocrat agreed a deal to add Ongame software to its online gaming platform, while German operator mybet and Cogetech’s IziPoker brand have joined the provider’s dot.com and dot.it networks respectively.
The end of the fourth quarter saw Amaya sign up SHFL as the exclusive distributor of its online poker and platforms in the United States, while another Nevada licensee, American Casino & Entertainment Properties, announced an agreement with Ongame in February.
“Gaming jurisdictions are moving towards regulatory frameworks that are evolving to adapt to the convergence of both interactive and land-based gaming operations,” Baazov said.
“We are well positioned to capitalize on this evolving regulatory framework due to our technology, regulatory status and strategic partnerships.”
(Photo courtesy of Riccardo Cellere)