Amaya posts net loss for 2013 but doubles revenue

Amaya Gaming Group said it was pleased with the development of the business in 2013, emphasising growth in its land-based business, the launch of interactive gaming products into the U.S. market and the acquisition of lottery solutions developer Diamond Game.

The company posted a Quarterly and Full Year net loss which it said was driven by a provision recorded in income taxes along with general and administrative expenses growing at a faster pace than revenues.

Key performance highlights for the fourth quarter and full year 2013 include:

Fourth Quarter 2013:

–   Revenue for the three month period ended December 31, 2013 was CAD $39.01 million (Q4/2012: CAD$37.19 million), a 5 percent increase.

–   Total expenses were CAD$45.97 million (Q4/2012: CAD$40.77 million).

–   Net loss was CAD$7.28 million, or CAD$(0.08) per basic and diluted common share (Q4/2012: -CAD$0.71 million).

Full Year 2013 for the period ending December 31:

–   Full year revenue amounted to CAD $154.53 million (FY2012: CAD $76.44 million), a 102 percent increase which it attributes to a full period of revenue reporting from CryptoLogic, Cadillac Jack and Ongame Network.

–   Total expenses were CAD$176.04 million (FY2012: CAD$87.43 million), up 101 percent due to a full period of expenses related to CryptoLogic, Ongame, Cadillac Jack and the company’s entry into the U.S. real-money online gaming market.

–   Net loss of CAD$29.62 million, or $(0.33) per basic and diluted common share, (FY2012: -CAD$7.11 million) The increased loss was driven by the provision recorded in income taxes along with general and administrative expenses growing at a faster pace than revenues.

“Regarding our interactive gaming solutions, we increased the number of licensing agreements we have to supply online gaming operators in 2013,” David Baazov, president and chief executive officer of Amaya Gaming Group said. “In 2014, we will continue to look to expand the reach of customers using our Casino Gaming System as well as increase revenues from existing licensees through a strong focus on providing operators with new and innovative gaming content, mobile versions of popular games from our extensive library, and online and mobile versions of top performing games already on our land-based gaming machines.

“We will also examine potential transactions that will improve our solutions offering and position us to be a leader in the growing global iGaming market.”

In related news today, Amaya Gaming Group announced a licensing agreement with Fertitta Acquisitions Co, LLD’s Ultimate Gaming business for the provision of online casino gaming content for the New Jersey market.

ucasino.com (Ultimate Casino), operated by Ultimate Gaming for its licensed gaming partner Trump Taj Mahal Associates, LLC, in New Jersey, will offer a selection of Amaya’s proprietary games through its Casino Gaming System (CGS) platform along with HTML5 game titles.

Around 70 of Amaya’s proprietary games have been certified for real money play in New Jersey to date and include slots, video poker, table games, shared jackpots and branded titles.

The agreement allows for the potential integration of other gaming websites operated by Ultimate Gaming to CGS in the future.

“We are excited to provide Ultimate Casino’s players with access to Amaya’s leading selection of online casino content,” said Ultimate Gaming Chief Executive Officer Tobin Prior. “Providing high quality, engaging and entertaining games from top content providers like Amaya is key to delivering the best possible experience to our players.”

Amaya will receive a percentage of the aggregate net revenue generated on its games as well as a percentage of the aggregate net revenue generated on any third party games passed through the CGS.

“We’re extremely pleased to add Ultimate Gaming to our growing list of licensees providing our online casino content for real money gaming in New Jersey,” said David Baazov. “Having established a strong reach in the nascent U.S. market, we will be looking to increase our market share on our licensee’s websites by providing new and innovative gaming content, an increasing selection of HTML5 games, and online and mobile versions of popular game titles that are currently on our land-based gaming machines.”

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