Thursday August 30,2012 : AMAYA GAMING REPORTS MAJOR REVENUE GROWTH IN FIRST HALF
EBITDA turns positive in second quarter, but earnings remain in the red
The Montreal-based Amaya Gaming group, which counts internet gambling software developers Chartwell Technology and Cryptologic among its subsidiaries, has turned in a more positive half yearly report to the end June 2012.
The company reported significant revenue growth of 285 percent to Cdn $14.548 million for the second quarter of 2012, an increase of Cdn$ 10.77 million compared to Cdn$ 3.77 million of revenues in the comparable quarter of 2011. This brought year-to-date numbers to Cdn$ 20.92 million compared to 2011's YTD of Cdn$ 4.91 million, an increase of 326 percent.
The group managed to turn its EBITDA positive in the quarter to Cdn$ 1.17 million (Q2-2011: a loss of Cdn$ 471,952), bringing the year-to-date number into a positive Cdn$ 450,691 (YTD 2011: a loss of 2.56 million).
Gross profit was Cdn$ 14.08 million in the second quarter of 2012, representing 97 percent of revenues, compared to Cdn$ 3.55 million or 94 percent of revenues in the second quarter of 2011. The increase in gross profit percentage was attributed to product sales mix, and in particular the inclusion of a greater proportion of high-margin software licensing revenue. For the year-to-date period, gross profit was 97 percent for the first six months of 2012, compared to 95 percent in the same period of 2011.
Net earnings continued to show a loss of Cdn$2.72 million in the quarter and Cdn$ 7.28 million YTD 2012, or 14c per share over the year.
Amaya had cash and cash equivalents of Cdn$ 109.24 million at June 30, 2012, compared to Cdn$ 3.05 million at December 31, 2011.
Long-term debt includes Cdn$ 26.19 million of convertible debentures and Cdn$ 580,000 million of subordinated debt.
Operational highlights announced by the company included:
* Over 800 Mosino gaming terminals deployed during the second quarter, bringing the worldwide total to over 4,660 units.
* Amaya and CryptoLogic announced contract extensions or expanded relationships with four customers.
* Ladbrokes will launch at least 10 of CryptoLogic's award winning casino games to join the two games that went live under the previous deal.
* BetClic Everest Group will launch a minimum of eight CryptoLogic casino slot games, to be available on such brands as Everest Casino.com, Imperial Casino.com and Casino Elegance.com.
* Betsson Malta Ltd. will have access to a portfolio of more than 100 of CryptoLogic's most popular casino games through CryptoLogic's Instant Click platform, and the right to launch any new CryptoLogic content going forward.
* A deal with Belgium's Circus Services SPRL, under which Amaya will supply its proprietary and branded games on the Amaya platform to the Casino 777.be website, one of Belgium's first regulated online gaming sites.
* Three new games launched by Cryptologic: Fire Flies, Captain Nemo, and Monte Cristo, the latter the industry's first game combining the features of a casino and casual game.
* Amaya raised gross proceeds of Cdn$ 107,408,430 in a private placement totaling 26,520,400 common shares issued at a price of Cdn$ 4.05.
* CryptoLogic shares were delisted from the Toronto Stock Exchange.
"We continue to deliver very strong revenue growth achieved both organically and through acquisition," said David Baazov, President and Chief Executive Officer of Amaya Gaming Group.
"The successful implementation of our growth strategy has led to a larger and more diversified customer base, as well as a more comprehensive product offering that improves our competitive position. Our recently completed financing provides us the resources to continue to execute and pursue some significant opportunities available in our industry."