Canadian online gambling giant Amaya Inc. reported on Monday its financial results for the quarter ended March 31, 2016. Overall revenue was up 6% year-on-year to $288.7 million as compared to the amount of $272.3 million posted for the same period of the previous year.
Revenue from real money online gambling operations was up 6.7% year-on-year. Proceeds from real money online poker offering accounted for 75% of the overall revenue reported for the quarter. Real money online casino gaming represented 21% of the total revenue generated over the period in review.
EBITDA totaled $118.7 million, up from the $109.8 million generated during the first quarter of 2015. Adjusted EBITDA increased from $113.5 million to $123.4 million. Adjusted net earnings amounted to $85 million during the first quarter of the year, up from the $67.4 million reported for the same period a year ago.
During the three months ended March 31, 2016, Amaya saw the number of customer registrations increase by 2.5 million to reach an approximate of 102 million by the end of the quarter. There were a total of 2.5 million quarterly real money active uniques (QAUs) over the reported period, representing a rise of 1.7% year-on-year. PokerStars saw as many as 2.4 million QAUs, up 4.2% year-on-year.
About 97.5% of all QAUs played online poker, approximately 469,000 QAUs played online casino games, and 169,000 QUAs took advantage of Amaya’s emerging sports betting offering.
During the quarter ended March 31, 2016, Amaya’s online poker brand PokerStars went live in New Jersey. Following the brand’s launch, online poker increased almost 30% in the state in April. During the first full month of operation, revenue from PokerStars NJ accounted for 46% of New Jersey’s overall real money online poker revenue.
Commenting on the company’s financial performance during the reported period, Interim CEO Rafi Ashkenazi said that they continued executing on their growth strategy despite the unexpected challenges the operator had to face. The executive further noted that during the previous quarter Amaya attracted new customers, introduced more changes with the aim of improving overall poker experience, continued to invest in its recently introduced sportsbook brand, and expanded its online casino offering.
It could be said that the first quarter of 2016 was particularly eventful for the Canadian gambling operator. In February, it was confirmed that former CEO and Chairman David Baazov intended to make an official bid for taking the company private. No such bid has been placed yet, however.
Later on, Mr. Baazov took an immediate and voluntary leave of absence, following the announcement that he has been charged with insider trading by the Autorité des marchés financiers (AMF), known to be Quebec’s securities regulatory body, following a thorough investigation a certain period of time before and shortly after Amaya acquired the Rational Group, owner of both PokerStars and Full Tilt.
Mr. Baazov claimed that the allegations were without merit. He also noted that he had taken the decision to leave his posts in order to focus his attention on preparing an official bid for the gambling operator he had himself found in the 2000s.
