Thursday May 30,2013 : LOSSES CONTINUE AT AMAYA GAMING
Online gambling provider reports Cdn$7,440,841 loss in Q1-2013
Revenues may be up, but losses continued to mount at Montreal-based Amaya Gaming group, according to the company's Q1-2013 results posted Tuesday.
Amaya reported revenues for the quarter up a heady 496 percent to Cdn$38,053,247 (Q1-2012: Cdn$6.384,037) but a loss of Cdn$7,440,841 (Q1-2012: Cdn$532,402). EBITDA came in at Cdn$10,264,017 (Q1-2012: – Cdn$532,402).
General and administrative expenses increased from Cdn$7.51 million for the three month period ended March 31, 2012, to Cdn$34.37 million for the three month period ended March 31, 2013, representing an increase of 358 percent, driven by a growing employee base and higher rent due to the CryptoLogic, Cadillac Jack, and Ongame acquisitions, and increases in amortisation costs, consulting and professional fees, costs incurred in connection with the termination of employment agreements, communications expense in connection with generating CryptoLogic's hosted casino revenue, maintenance and repairs, and other costs.
The report showcases a busy round of deals and activity around the globe for the Canadian online gambling group.
Management announced that subsidiary Cadillac Jack has executed a multi-year agreement with one of its largest customers in Mexico to expand Cadillac Jack's leased install base by 890 gaming units across 13 locations throughout Mexico.
During the first quarter, Amaya bought back 660,800 shares for $3.24 million pursuant to its approved normal course issuer bid under which Amaya intends to purchase for cancellation up to 5,650,000 Common Shares.
Amaya concluded the signing of the definitive agreement with SHFL Entertainment under which Amaya has selected SHFL as its exclusive distributor for its Ongame poker platform in the United States for a 10-year term.
Amaya has expanded its agreement with mybet to include Amaya's Ongame Poker Platform and Live Dealer offering on mybet websites, and has announced that Cogetech S.p.A has chosen Amaya's Ongame Poker to power Izipoker.it.
In another MOU with Aristocrat Technologies, Amaya's Ongame poker platform will be offered to Aristocrat US customers through the nLive online gaming platform.
During the quarter Amaya also signed up Bally Technologies to integrate the Ongame poker platform into Bally's iGaming platform as its preferred poker provider in the emerging U.S. online gaming market.
In Italy, Amaya launched of some of its most popular online casino slot games through Microgame S.p.A., the leading service provider for the remote gaming market in Italy, and in Belgium it launched games on Circus Group's Casino777.be, one of Belgium's first regulated online gaming sites.
Amaya is also involved with ACEP Interactive, LLC, the interactive gaming arm of Nevada-based American Casino & Entertainment Properties, providing its Ongame poker network to power ACEP's online poker offering at acePLAYpoker.com.
The company has also extended its agreement with Warner Bros. Consumer Products, on behalf of DC Entertainment, to be the exclusive provider of DC Comics comic book-inspired pay-to-play online casino games.
On the investment front, the company closed a private placement of units for aggregate gross proceeds of $30 million.
Chief executive officer, David Baazov, reported:
"We're extremely pleased with the substantial positive cash flow generated from our operations in the first quarter. This is a strong focus of Amaya's management team.
"So far this year, we have expanded the reach of our interactive offering in the United States with the SHFL and Aristocrat partnerships, in addition to our relationship with Bally." said Baazov, adding that the company is now well-placed to take advantage of the evolving US legalization of online poker.
"Gaming jurisdictions are moving towards regulatory frameworks that are evolving to adapt to the convergence of both interactive and land-based gaming operations. We are well positioned to capitalize on this evolving regulatory framework due to our technology, regulatory status and strategic partnerships," he said.