Amaya Gaming Raises 2016 Guidance on Strong Q4 Results and CFO Transition
Amaya Gaming released significant financial updates today, revising their 2016 projections initially shared in November. They now anticipate reaching the upper range of their income forecast, approximately between $1.153 billion and $1.158 billion. This represents a minor increase from their prior estimate of $1.137 billion to $1.157 billion. For context, their 2015 income was roughly $1.072 billion.
However, there’s more! Their modified EBITDA is also showing positive signs. They project it to be between $521 million and $526 million, surpassing their earlier estimate of $500 million to $510 million. During 2015, this metric was around $459 million.
The good news continues! Amaya forecasts their modified net earnings to be between $364 million and $374 million, a rise from their previous outlook of $344 million to $354 million. As a point of reference, their 2015 modified net earnings were approximately $291 million. This upward trajectory also applies to their modified diluted earnings per share, which they anticipate to be within the range of $1.87 to $1.92, exceeding their prior prediction of $1.78 to $1.83. In 2015, this figure stood at $1.47.
One final update: Daniel Sebag, their current CFO, is entering retirement.
The head of Amaya, Rafi Ashkenazi, expressed significant confidence in 2016, forecasting a banner year for the organization. He highlighted their casino offerings surpassing projections in the final quarter, driven by operational enhancements and a triumphant reintroduction in Portugal. Ashkenazi stressed their meticulous and productive marketing strategy.
He viewed 2016 as a period of robust progress, escalating throughout the year due to their strategic emphasis on enhancing the poker experience for recreational players. Amaya sought to capitalize on its global dominance in online poker to draw in new users, cross-market casino and sports wagering products to both existing and new players, and ultimately optimize the lifetime worth of each customer.
Projecting to 2017, Ashkenazi expected this upward trajectory to persist as they implemented their plan. Nevertheless, he recognized potential obstacles, including the persistent fragility of certain currencies relative to the US dollar, which had already been an element over the preceding two years. Furthermore, he alluded to the previously disclosed possibility of discontinuing their real-money online poker activities in Australia.
Were striving to propel our company ahead, with thrilling initiatives on the horizon. A novel customer rewards system encompassing our entire portfolio is in development, and we’re investigating entry into untapped markets. Our dedication to providing a superior encounter across internet casino entertainment, sports wagering, and poker stays steadfast, and we’re continuously refining our processes to attain this.
Save the date! We’ll be revealing the specifics for our complete year 2016 fiscal performance announcement in early March.
The concluding quarter of 2016 demonstrated remarkable expansion. We had roughly 2.6 million engaged users participating in our real-money offerings, an 8% climb year-on-year. Approximately 2.5 million of these users frequented the virtual poker tables, signifying a 5% uptick. Our internet casino offerings enticed around 648,000 users, a surge of 47% contrasted with the prior year. And our flourishing online sportsbook division observed an impressive 88% year-on-year growth, reaching roughly 247,000 users.
We also greeted a substantial 2.6 million fresh customer sign-ups during the quarter, elevating our total user base to an exceptional 108 million by year’s end.
On another note, Daniel Sebag, our Chief Financial Officer, has opted to pursue fresh opportunities later this year. He’ll remain with us until we identify and install a suitable replacement, guaranteeing a seamless handover. We express our gratitude to Daniel for his commitment and extend our best wishes for his future endeavors.”
The organization’s directors have engaged Spencer Stuart, a leading executive recruitment agency, to assist in identifying their subsequent Chief Financial Officer.
Sebag has been employed by Amaya since 2007. In his initial role as CFO, he played a crucial part in establishing the financial and accounting departments from scratch. During his tenure, the company went public and subsequently, through the significant $4.9 billion purchase of the Rational Group in 2014, evolved into a consumer technology powerhouse.
“Danny has dedicated himself fully to developing Amaya into a worldwide frontrunner in the gaming sector and preparing the company for prosperity in the years to come,” remarked Divyesh Gadhia, Chairman of the Board. “On behalf of the entire organization, I want to express our gratitude for his numerous contributions throughout the years and extend our best wishes for his retirement.”
