Robust first quarter for Amaya Gaming Giant
18 May 2015
Amaya Gaming is probably the most formidable presence on the online gaming market at the moment. This exceptional North American Gaming Company has disclosed high volume revenue returns on their investments seen in their first 2015 quarter year-on-year financial report.
Gaming giant Amaya acquired Rational Group last year to take control of the leading online gaming brands, which has seen the company’s robust revenue growth since, exponentially. Revenue for the three-month period ended March 31, 2015 was $340.1 million dollars, as compared to $12.8 million for the comparable prior year period. This increase was primarily attributable to consolidating business to consumer (B2C) revenue, primarily generated by PokerStars, with business to business (B2B) revenue. PokerStars increased its market share of the online power market, based on cash game and tournament players, from 62 per cent to 66 per cent.
Amaya chief executive officer commented saying: “We saw continued strength in our core consumer online gaming business in the first quarter with gross deposits at PokerStars increasing approximately 9% on a domestic currency basis and PokerStars estimating an increase in its share of the global online poker market. We believe that this healthy engagement helped counter new sales taxes and gaming duties in certain major European jurisdictions as well as a significant decrease in the purchasing power of our consumer base stemming from a sharp decline in the value of their local currencies versus the U.S. dollar (USD), which is the predominant currency of gameplay”.
“PokerStars recently made multiple strategic marketing investments to help grow the global poker sector, including the sponsorship of new poker pros, celebrities and athletes, notably football megastar Neymar Jr, who we anticipate will help attract new players to the game. These investments were in part driven by our expansion into adjacent gaming verticals including casino and sports betting, which have provided new revenue streams since their introduction. We ended the quarter with more than 93 million cumulative customer registrations, an increase of nearly 2.5 million during the quarter.”
“We continue to execute on our strategy to divest our B2B assets and have completed the spin-off of Diamond Game through the IPO of Innova, and announced strategic transactions to sell Cadillac Jack to AGS, and sell Chartwell and Cryptologic to NYX Gaming Group. We anticipate these divestitures will substantially reduce our indebtedness and fund a portion of the buyback of our common shares. We also expect the continued strong cash flow generated from our B2C business to allow us to deliver throughout the remainder of 2015, support the buy-back of our common shares and allow us to pursue, among other things, potential strategic investments or acquisitions.”