Baazov praises Rational takeover as Amaya targets further growth in B2C

Baazov praises Rational takeover as Amaya targets further growth in B2C

Monday, November 17, 2014

David Baazov, the chairman and chief executive of Amaya, has highlighted the “transformational” impact of the Canadian gaming company’s takeover of Rational Group after revealing impressive quarterly figures.

Amaya reported a huge increase in year-on-year figures for the three months through to September 30, with revenue increasing from C$39m (€28m/$34m) to C$239 and fully diluted adjusted net income soaring from C$7m to C$70m.

Adjusted earnings before interest, tax, depreciation and amortisation increased from C$18m to C$108m with cash flow from operating activities rocketing to C$139m from C$3m.

In a conference call, Baazov said that Amaya’s $4.9bn takeover of Rational, the parent company of online poker brands PokerStars and Full Tilt, had altered the company’s outlook.

“During the quarter we generated record results and revenues,” he said.

“We completed the acquisition on August 1 so the latest results only include the first two months. These results illustrate how transformative the acquisition of the company will be.”

Baazov said that Amaya’s increasing focus on the B2C market had led to its decision to sell B2B poker and platform service provider Ongame to NYX Gaming Group as part of a broader deal to make a C$10m “strategic investment” in the online gaming firm.

Chief financial officer Daniel Sebag added: “B2C represented 87 per cent of our in the quarter so we anticipate the growth of our B2C business to allow us to support the execution of our growth initiatives.”

Baazov also reported strong growth in Spain, where the company now enjoys a double-digit market share in terms of turnover, and in mobile, which represented more than half of new registrations.

Amaya said that its full-year results would be “at the high end of the range” of between C$669 million and C$715 million in revenue and between C$265 million and C$285 million in adjusted EBITDA.

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