Amaya report strong full year 2016 results
News on 22 Mar 2017
News on 22 Mar 2017
Amaya Inc. reported a robust set of full year 2016 results, saying its online casino business exceeded expectations and changes to its poker ecosystem and a focus on customer acquisition had begun to reverse certain negative trends.
Key performance indicators for the twelve month period ending December 31, 2016 include:
– Total revenue of $1,155,892,000 (2015: $1,072,320,000), up 7.8 percent.
– Online poker accounted for 73.2 percent (2015: 82.7 percent) of revenues reaching $846.1 million, a decline of 4.6 percent. Online casino and sportsbook accounted for 22.8 percent (2015: 12.7 percent) of total annual revenues.
– An increase of 14.1 percent in adjusted EBITDA to $524,093,000 (2015: $459,290,000).
– Net earnings (loss) from continuing operations of $135,550,000 (2015: $(20,019)), up 777 percent.
– Adjusted net earnings of $366,699,000, an increase of 26.1 percent (2015: $290,802,000).
– Customer registrations reached 108 million at year end.
“2016 was a record year of revenues for Amaya,” said Rafi Ashkenazi, Chief Executive Officer. “Our proactive changes to the poker ecosystem and customer acquisition initiatives continue to reverse certain negative trends and we are starting to see organic growth in that business, our casino offering exceeded expectations as we introduced limited marketing campaigns and focused on our cross-sell efforts, and we continued to build and develop our sportsbook.
“The strong performance of our business has helped us to reduce our currency risk, lower our interest expense, and accelerate the payment of the remaining amounts owed on our deferred payment obligation, all of which will allow us to continue pursuing our four strategic priorities. We expect to continue our 2016 momentum and execute on our strategy in 2017,” Ashkenazi concluded.
In a 2017 performance update and full year guidance, Amaya estimates it has achieved unaudited consolidated revenues of around $215.3 million in the first two months of the year, an increase of 13.3 percent over the same period 2016.
68.9 percent is attributed to real-money online poker and 27.4 percent to real-money online casino and sportsbook combined, the company said.
In terms of full year financial guidance for 2017, Amaya currently expects to reach: Revenues of between $1,200 million and $1,260 million; adjusted EBITDA of $560 to $580 million; adjusted Net Earnings of $400 to $430 million; and adjusted Net Earnings per Diluted Share of $1.94 to $2.13.
