Wednesday May 30, 2012 : AMAYA TURNS IN QUARTERLY RESULTS
Expects accelerated growth in second quarter
Amaya Gaming Group reported its first quarter 2012 results showing impressive revenue increases of 461 percent over the same period last year, but a net earnings loss attributed to costs involved with the acquisition of CryptoLogic .
Key performance indicators for the first quarter period ended March 31, 2012 include:
– Revenues of $6.38 million (Q1/2011: $1.14 million), up 461 percent, broken down as:
– Africa – 153 percent revenue growth (SMS lotteries in Uganda and Kenya);
– Europe – 190 percent revenue growth;
– Caribbean – new market generated $3.23 million
– Gross profit of $6.13 million, representing 96 percent of revenues (Q1/2011: $1.13 million or 99 percent)
– Selling expenses decreased 7 percent after reductions were made in marketing expenditure on African SMS lottery ventures
– General and administrative expenses were $7.70 million (Q1/2011: $1.68 million) following an expansion in employee bases in Kenya, Uganda, Moldova, Armenia and Dominican Republic.
– Acquisition-related costs amounted to $2.27 million associated with the acquisition of CryptoLogic.
Revenue growth was primarily attributable to sales of Amaya's proprietary Mosino gaming terminals, the inclusion of software licensing revenue from Amaya Alberta (formerly Chartwell Technology Inc.), and the operation of SMS lotteries in Kenya and Uganda.
– EBITDA was $0.72 million on revenue of $6.4 million (Q4/2011: $3.4 million on revenue of 9.5 million), attributable to the launch of the mobile lottery in Moldova and online gaming in the Dominican Republic.
"In the first quarter we continued our pattern of strong year-over-year revenue growth, driven primarily by the ongoing deployment of our Mosino gaming terminals," said David Baazov, president and chief executive officer of Amaya Gaming Group.
"The completion of the CryptoLogic acquisition was a major strategic accomplishment. While the transaction suppressed first quarter earnings, it will open up new opportunities for us around the world and position us for accelerated growth beginning in the second quarter."