Amaya hails impact of PokerStars takeover as revenue and earnings soar
Canadian gaming provider Amaya Gaming has hailed the “immediate” impact of its takeover of Rational Group, the operator of online poker brands PokerStars and Full Tilt Poker, after posting a huge year-on-year increase in quarterly revenue.
Amaya, which completed its US$4.9 billion (€3.6 billion) takeover of Rational in August, said that revenue had rocketed year-on-year from C$39 million (€27.5 million/$34.3 million) in the third quarter of 2013 to $239 million in the three months through to the end of September 2014.
Fully diluted adjusted net income improved tenfold from C$7 million to C$70 million with adjusted earnings before interest, tax, depreciation and amortisation increased from C$18 million to C$108 million.
Cash flow from operating activities shot up from C$3 million in the third quarter of 2013 to C$139 million this year.
“The acquisition of PokerStars has transformed Amaya and delivered immediate value to our shareholders while setting the stage for additional future growth,” Amaya chairman and chief executive officer David Baazov said.
“In these early days I could not be happier with the initial performance of the business and the professionalism and expertise of the PokerStars management team.
“They are implementing strategic plans that leverage exciting, innovative poker variants, new gaming verticals and the mobile platform to increase engagement and new consumer acquisition.”
Amaya said that its full-year results would be “at the high end of the range” of the previously announced guidance for 2014 that projected revenue of between C$669 million and C$715 million and adjusted EBITDA of C$265 million and C$285 million.
Amaya also announced that it had reached an agreement to sell B2B poker and platform provider Ongame to online gaming company NYX Gaming Group in order to focus on its consumer-facing poker business.
Amaya will also make a C$10 million “strategic investment” in NYX Gaming as it continues to expand its existing relationship with the company.
Related article: Amaya completes Rational takeover