Amaya Gaming Group third quarter results

Canadian entertainment solutions provider Amaya Gaming Group reported record revenues and a five-fold sequential increase in adjusted EBITDA in its third quarter ending September 30, 2012 financial results.

Going into the fourth quarter, Amaya has made significant and strategic deals during this month alone that include the acquisition of the Ongame Network Ltd, who subsequently announced an online poker deal with Mohegan Sun for entry into the online U.S. gambling market in the first quarter of 2013 and the acquisition of product and technology supplier Cadillac Jack Inc earlier this month.

The firm expects to capitalize on revenue and cost synergies from both acquisitions early in 2013.

Key performance highlights over the Company’s third quarter period include:

–   Revenues of CAD$ 18.3 million (3Q/2011: CAD$ 3.97 million), up 360 percent.
–   Gross profit of CAD$ 18.26 million, representing 99 percent of revenues, (3Q/2011: CAD$ 3.8 million)
–   Adjusted EBITDA CAD$ 5.9 million (3Q/2011: CAD$ 900 107)
–   Net earnings CAD$ 881 451 (3Q/2011: loss of CAD$ 1.8 million)

Key performance highlights over the Company’s nine month period include:

–   Revenues of CAD$ 39.2 million (9M/2011: CAD$ 8.8 million), up 341 percent
–   Adjusted EBITDA CAD$ 6.3 million (9M/2011: loss CAD$ 3.5 million)
–   Net earnings loss of CAD$ 6.4 million (9M/2011: loss of CAD$ 4.7 million)

David Baazov, president and chief executive officer of Amaya Gaming Group commented on the results:

“We were very pleased with the organic growth of our revenues in the third quarter over the second quarter, which was primarily due to the growth of the licensee bases in Europe of our subsidiaries CryptoLogic and Chartwell.”

The firm expects to deliver revenue’s of CAD$36 to 40 million over the fourth quarter and an adjusted EBITDA in the range of CAD$13.5 to 15 million.