Amaya targets online casino and sportsbook following Stars acquisition
CEO David Baazov says Rational Group buyout provides "an enormous opportunity" in new verticals and geographies
Amaya Gaming says it will use the acquisition of PokerStars’ parent company the Rational Group to target the online casino and sportsbook verticals after posting a 14% rise in revenues for H1 2014.
The Canadian supplier recorded Group revenues of CA$42.5m (£23.4m) during the period ended 30 June 2014, driven by an increase in the number of gaming machine sales through its Cadillac Jack business and its $25m acquisition of Diamond Game Enterprises.
Total expenses for the quarter were up 36% on the same period last year to $61.6m (£33.9m), driven by non-recurring costs related to Amaya’s acquisition of PokerStars.
Adjusted EBITDA for the quarter was $14.3m (£7.9m), leading to a net loss of $2.9m (£1.6m) compared with $11.4m (£6.3m) in 2013.
The latest figures take Amaya’s H1 2014 revenues to $83.7m (£46m) up 11% on the same time last year, with adjusted EBITDA of $29.8m (£16.4m) leading to net income of $36.7m (£20.2m).
Amaya CEO David Baazov said the acquisition of the Rational Group, which completed on 1 August, has provided Amaya with a “strong platform for growth in revenues and profitability”.
He also said the deal offered “an enormous opportunity” to “take advantage of opportunities in online casino and sportsbook”, with Rational’s Full Tilt subsidiary already in the process of diversifying away from poker.
“Amaya is committed to supporting these growth initiatives. However, with respect to the new verticals, we are determined that they do not provide any disruption to the core poker offering and that the new vertical offerings are as robust and enjoyable as Rational’s online poker,” he added.
With the New Jersey regulator having indicated that PokerStars and Full Tilt could be licensed and taking wagers from players in the state as early as Fall with casino partner Resorts, Baazov said the “outlook for its [PokerStars and Full Tilt] entry into new verticals and geographies is strong”.
Due to Amaya’s acquisition of the Rational Group, the company has adjusted its full year financial targets estimating revenues of $669m (£368m) to $715m (£393.4), up from $193m (£106.2m) to $203m (£111.7m). Predicted adjusted EBITDA has also risen from $86m (£47.3m) to $285m (£156.8m).