Amaya Q3 Financial Growth Achieved Despite Challenges

Widespread year-on-year Amaya Q3 financial growth has been achieved despite the online gambling giant experiencing “global challenges,” says chairman and CEO David Baazov.

In Canadian gambling news, during the three months through to September 30th, revenue for Amaya’s third quarter totaled CAD 324.7 M. This is an 8% jump from the CAD 299.5 M of last year’s corresponding period. 13% of this revenue came from online casinos, while the rest came from Amaya’s real-money poker games and services. Other financial statistics include an 8% EBITDA increase to CAD 141.7 M, a 13% increase in adjusted net earnings to CAD 90.5, and a 16% increase in adjusted net earnings per diluted share to CAD 0.44.

Braazov also noted that as a result of the Amaya Q3 financial growth, revenue for the nine months leading to the end of September is now CAD 981.5 M, up from last year’s CAD 924.2 M. There have been corresponding increases in EBITDA, adjusted net earnings, and net earnings per diluted share for this nine-month period.

Braazov credits the Amaya Q3 financial growth to B2C. Says Braazov: “Since Amaya’s acquisition of its B2C business, we have consistently delivered shareholder value. And, despite multiple recent global challenges to our core business, we believe we are well positioned to increase our cash flow and continue to grow our customer base in 2016 through a number of initiatives.”

Amaya says decline due to delay of BetStars sportsbook release

In opposition to the Amaya Q3 financial growth, the Canadian internet casino company has experienced some decline in revenue as well due to numerous factors. Baazov credits the decline primarily to the delayed release of its new online sportsbook in Canada, BetStars, which GamingZion reported on earlier this week. Braazov said there was “a recent strategic decision to delay the rollout of significant aspects of our new online sportsbook offering across geographies while we enhance the consumer product experience and complete the product offering.”

Braazov also blames the strengthening of the US dollar relative to certain foreign currencies, saying that it “has resulted in an approximate 19% decline in the purchasing power of our customer base and has had a significant negative impact on our revenues, higher than we previously anticipated.” He also mentioned the “temporary cessation of our operations in Portugal and Greece” contributing to the decline in revenues, and says that as a result they are “also projecting less adjusted EBITDA and pro forma adjusted net earnings than our previous guidance.”