Amaya Inc. has issued a hopeful revision to its 2016 fiscal year outlook and declared the impending departure of its Chief Financial Officer, Daniel Sebag.
The organization modified its preliminary projections, which were disseminated in November 2016, for the entirety of the 2016 fiscal year. Having assessed present and anticipated economic circumstances, Amaya now projects its revenue to hit the high end of its prior estimated span of $1.137 billion to $1.157 billion. The revised forecast anticipates revenue ranging from $1.153 billion to $1.158 billion. To offer perspective, their 2015 revenue was roughly $1.072 billion.
Amaya also foresees surpassing its previously projected range for adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). The initial estimate was between $500 million and $510 million. The updated forecast suggests an adjusted EBITDA between $521 million and $526 million. Comparatively, their adjusted EBITDA in 2015 was approximately $459 million.
Moreover, the company expects its adjusted net income to outpace the previously predicted range of $344 million to $354 million. They have elevated their guidance to between $364 million and $374 million. In 2015, their adjusted net income was around $291 million. This upward trajectory continues with their adjusted diluted earnings per share, which is also projected to exceed the initial forecast of $1.78 to $1.83. Amaya now anticipates adjusted diluted earnings per share to land between $1.87 and $1.92. In 2015, this metric was $1.47.
Amayas chief executive, Rafi Ashkenazi, conveyed a hopeful outlook for the company’s trajectory, forecasting unprecedented earnings for 2016. He underscored the remarkable achievements of their gaming offerings, the effectiveness of their operational enhancement strategy, and the favorable influence of the Portuguese market reintroduction. These elements contributed to a robust final quarter that surpassed projections. Ashkenazi stressed the company’s economical and focused promotional tactics.
He ascribed the positive momentum generated throughout 2016 to their strategic emphasis on enhancing the casual gamer experience in internet poker. By capitalizing on their global dominance in the online poker arena, Amaya effectively drew in new customers and successfully cross-promoted casino and sports wagering products to them. This method, he observed, was crucial for optimizing customer lifetime worth.
Looking forward, Ashkenazi expressed assurance in Amaya’s capacity to sustain this impetus and implement its strategy in 2017. Nevertheless, he recognized potential obstacles, including the ongoing depreciation of specific currencies relative to the US dollar, a pattern observed over the preceding two years. Moreover, he alluded to the previously disclosed possibility of discontinuing real-money online poker activities in Australia.
The PokerStars parent company, Amaya Gaming, announced a robust conclusion to 2016, exhibiting expansion across all its sectors, notably in casino and sports wagering. Despite encountering obstacles such as adverse currency fluctuations and regulatory challenges, the firm maintains a positive outlook on its future trajectory.
Numerous strategic endeavors are in progress, encompassing a novel cross-platform rewards program, penetration into emerging markets, and a sustained emphasis on product uniformity across its online casino, sportsbook, and poker offerings.
Amaya’s operational highlights for the final quarter of 2016 showcase an 8% year-on-year rise in its active user base, approaching 2.6 million. The company observed a 5% uptick in online poker participants, with roughly 2.5 million users. Amaya’s online casino product experienced a considerable surge in favor, boasting a 47% year-on-year jump in active users, reaching approximately 648,000. The company’s burgeoning online sports wagering platform also witnessed substantial expansion, with an 88% year-on-year increase in active users, reaching approximately 247,000.
These encouraging statistics are further strengthened by the addition of 2.6 million new customer registrations during the quarter, bringing the cumulative total to roughly 108 million by the year’s end.
In closing, Amaya revealed that Daniel Sebag will be relinquishing his role as Chief Financial Officer later in the year. Sebag will continue his tenure with the company to guarantee a seamless handover once a suitable replacement is identified and appointed.
Amayas leadership team has enlisted the help of Spencer Stuart, a top-tier international executive recruitment agency, to identify their successor for the Chief Financial Officer role.
Sebag, who came to Amaya in 2007 as their inaugural CFO, has been a pillar of the organization. He guided their financial course from its nascent stages as a fledgling company all the way to their initial public offering. His contributions didn’t end there, as he adeptly managed their evolution into a consumer technology powerhouse following their substantial $4.9 billion purchase of the Rational Group in 2014.
“Danny has dedicated himself fully to establishing Amaya as a global frontrunner in the gaming sector,” remarked Divyesh Gadhia, Chairman of the Board. “He has played a critical role in securing our robust standing for the years ahead. On behalf of the entire organization, I want to express our gratitude for his years of commitment and extend our best wishes for a fulfilling retirement.”
admin