Revenues, EBITDA, and net income are all at the rise for Amaya Inc., the landlord of PokerStars, the world's largest real-money online poker network, publicly released in its financial results for the primary quarter of 2016.
Revenue for the gang increased by a modest 6 percent from $272.3 million within the first quarter of 2015 to $288.7 million within the most up-to-date quarter. The gang notes that the rise in revenue would was a fair healthier 13.9 percent if not for adverse changes in foreign currency echange rates.
While the revenue mix remains dominated by online poker, the figures show that Amaya is making inroads in other verticals to boot. Through the first quarter of 2016, 75 percent of the group's revenues associated with online poker, with another 21 percent coming from casino and sports-wagering verticals in comparison to 89 percent and six percent in the course of the same period a year ago.
This also means that while total revenue increased, this was as a result of huge strides in online casino and sports-wagering verticals offset by a revenue decline in online poker.
EBITDA, which many analysts believe define the healthiness of a company's ongoing operations, also increased in the same ratio to that of revenue. Revenue hiked as much as $123.4 million within the first quarter of 2016 representing an 8.7-percent increase from the $113.5 million reported within the same quarter in 2015.
Since EBITDA doesn't account for interest, taxes, depreciation, or amortization, additionally it is important in Amaya's case to take a look at net earnings because of the huge debt incurred by the gang after they purchased the parent company of PokerStars, the Rational Group. The corporate seems to be greater than healthy from this standpoint in addition with adjusted earnings from continuing operations increasing by an enormous 138.5 percent from $23.3 million within the first quarter of 2015 to $55.5 million within the first quarter of this year.
Likewise, adjusted net earnings also increased, albeit at a smaller 26 percent growth rate from $67.4 million to $85.0 million. Additionally, way to a C$30 million debenture repayment, the corporate was in a position to reduce its total debt to $2.57 billion with a normal rate of interest of 5.1 percent.
Rafi Ashkenazi, Interim Chief Executive Officer of Amaya, commented that the corporate is targeted towards its growth patterns despite "management changes" which most notably included David Baazov taking a voluntary leave of absence in late March on account of insider trading allegations made by Quebec's securities regulator Autorité des marchés financiers. As a reaction to this, Amaya replaced one man with two by appointing Divyesh (Dave) Gadhia as Interim Chairman and Ashkenazi as Interim CEO.
"Amaya remains focused," Ashkenazi commented within the financial report press release. "THROUGHOUT THE first quarter, we continued to execute on our growth plans despite unexpected challenges, including management changes and the continuing strategic alternatives process. We attracted new customers to PokerStars, continued to introduce changes to enhance the whole poker experience, expanded our online casino offering and continued to take a position in our emerging online sportsbook."
Additionally, the financial report notes that both Baazov and Amaya's Chief Financial Officer Daniel Sebag advised the corporate that they're going to not stand for re-election as directors in the course of the next annual shareholders meeting. Furthermore, the financial reported mentioned, "The Board is actively engaged in identifying suitable director candidates with competencies that complement those of Amaya's existing directors."
Also reported was that the Special Committee will continue its mandate of both looking into the insider trading allegations in addition to investigating strategic alternatives for the corporate and its shareholders. This includes the engagement of the financial advisor Barclays Capital Canada Inc. reaching out to "quite a number strategic and monetary parties who may well be inquisitive about a transaction involving Amaya."
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