Amaya boosted by new sports offering

Amaya boosted by new sports offering

Thursday, August 13, 2015 Totally Gaming
David Baazov was encouraged by sportsbook performance and debt restructuring

Amaya saw revenue up 10.5 per cent in the most recent quarter as Pokerstars’ owner noted the addition of its new sportsbook to the balance sheet.

The gaming operator, which also owns Full Tilt, said that turnover in the three months to June 30 was up from $289.3m (€260.1m) to $319.6m, of which $11m was made up from its non-poker offering, including the sports book.

Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) also jumped from $111.8m to $138.2m, with adjusted net earnings growing from $59.7m to $86.1m.

“This was another exciting quarter for Amaya,” Amaya chairman and chief executive David Baazov said. “Our core poker business remains strong and our customers have embraced our expansion into non-poker offerings.”

The sportsbook currently hosts markets on just 10 sports, but this is to be extended to 25 by the end of the year with the offering also set to be rolled out to more jurisdictions.

Amaya was also pleased with its performance in terms of reducing its exposure to debt, having repaid approximately $529m of its long-term debt, which stands at approximately $2.61bn following the $4.9bn purchase of PokerStars and Full Tilt in 2014.

Part of this was achieved through restructuring of debt and part through the recent sale of its B2B businesses, with Amaya claiming that its annual interest expense will be reduced by approximately $62m.

“We’ve completed our transition to a pure B2C technology company having finalised the divestiture of our B2B businesses,” Baazov said. 

“We substantially reduced our leverage and improved our financial condition. Since the acquisition of our B2C business, we’ve repaid approximately $529 million of our long-term debt, thereby eliminating an estimated $62 million of related interest expense.”

In total, revenue in the first half amounted to $656.9m, up from $624.7m year-on-year, while adjusted EBITDA jumped from $248m in the first half of 2014 to $279.5m. Adjusted net earnings increased from $138.9m to $170.4m.

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