Rational Group bucks poker trend with 15% H1 profit rise
PokerStars and Full Tilt operator posts 4% increase in revenues as cost cutting helps boost H1 profits to $221m
PokerStars and Full Tilt operating company Rational Group posted a US$221.2m operating profit during the first half of 2014 with a 10% cut in marketing costs helping to boost bottom line numbers and buck the poker market trend.
Bwin.party reported an 119% drop in H1 poker EBITDA and a 31% drop in poker revenue during the same period, with 888 the only listed firm reporting positive poker numbers during the first six months with a 3% rise in revenue.
According to accounts published by Amaya Gaming yesterday, revenues for Rational Group rose by 4% in the six months ended June 2014 to $567.9m although profits rose 15% during the same period thanks in part to a reduction in marketing and administration costs.
Customer acquisition and retention costs were down 10% year-on-year to $78.7m, with affiliate costs down 14% to $16.5m, while general and administrative costs were down 28% to $26.6m.
The financial figures also revealed a significant increase in payroll costs, up from $89.9m to $104.4m in the first half of this year while there was an 8% rise in gaming duty to $50.1m.
Rational Group’s parent company the Oldford Group was acquired by Amaya in a $4.9bn deal in August 2014.
Since completing the acquisition in September, Amaya has overseen the launch of PokerStars’ first branded online casino in Spain, as well as withdrawing from around thirty grey markets including Malaysia, Turkey, Bangladesh, Nigeria, and Iran.