Amaya is poised for financial success in 2016! The company has significantly upgraded its fiscal outlook, increasing projections across all areas. Anticipated revenue is now expected to reach the higher end of their initial estimate, landing somewhere between $1.153 billion and $1.158 billion. This surpasses their prior prediction of $1.137 billion to $1.157 billion. For context, their 2015 revenue was approximately $1.072 billion.
The company’s profitability is also looking quite positive. Amaya predicts adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be in the range of $521 million to $526 million, exceeding their earlier projection of $500 million to $510 million. In comparison, their 2015 EBITDA was $459 million.
The positive trend continues with adjusted net income, which is now anticipated to fall between $364 million and $374 million. This surpasses the initial forecast of $344 million to $354 million and represents a substantial increase from the $291 million earned in 2015.
Lastly, adjusted earnings per share are projected to be between $1.87 and $1.92, exceeding the previous estimate of $1.78 to $1.83. To illustrate the growth, this figure stood at $1.47 in 2015.
One final noteworthy development: Daniel Sebag, the current CFO, will be stepping down from his position. Whether his departure is connected to the impressive financial performance remains to be seen, but it’s certainly a situation worth monitoring.
Amayass chief executive, Rafi Ashkenazi, conveyed significant confidence regarding the firm’s 2016 achievements, forecasting an unprecedented year. He underscored the triumphs of their gaming offerings, operational enhancements, and the reactivation of the Portuguese market as primary catalysts for their exceeding fourth-quarter outcomes. Ashkenazi emphasized their targeted and streamlined method of product marketing.
He ascribed the company’s expedited expansion in 2016 to their plan of enhancing the casual player encounter in poker and capitalizing on their worldwide dominance in online poker to draw in new patrons. This tactic also facilitated cross-selling initiatives, enticing both fresh and current clientele to their casino and sports wagering products, ultimately optimizing customer lifetime worth.
Anticipating 2017, Ashkenazi recognized potential obstacles, including exchange rate volatility affecting customer purchasing ability and the potential cessation of real-money online poker in Australia. Notwithstanding these barriers, he voiced assurance in sustaining expansion and executing their strategic blueprints.
Amaya is preparing to unveil its financial performance for the 2016 fiscal year. Anticipate information regarding the publication date and hour in the early days of March.
Here’s a glimpse at some of their key operational achievements from the final quarter of 2016:
* **Paying customers continued to ascend:** They witnessed an 8% rise compared to the previous year, reaching nearly 2.6 million.
* **Online poker maintained its dominance:** Approximately 2.5 million of these users engaged in poker, reflecting an estimated 5% growth compared to the corresponding period last year.
* **Online casino offerings experienced a surge in demand:** This sector attracted roughly 64,800 paying customers during the quarter, signifying a substantial leap of approximately 47% year-over-year.
* **Sports wagering demonstrated significant potential:** Amaya’s recently launched sportsbook platform observed a remarkable 88% increase in quarterly paying customers, reaching around 24,700.
Moreover, Amaya acquired a substantial 2.6 million new customer registrations during the quarter, elevating their overall user base to an impressive 108 million by the year’s conclusion.
In separate developments, Daniel Sebag, Amaya’s present CFO, has disclosed his intention to resign later this year. The precise timing will be established once a suitable replacement is identified and the transition is completed. Sebag is dedicated to guaranteeing a seamless transfer of his duties.
Amayas leadership team has enlisted the help of top recruitment agency, Spencer Stuart, in their quest to secure a new Chief Financial Officer. This decision follows the announcement of current CFO, Danny Sebag’s, upcoming retirement.
Sebag has been a part of Amaya since its inception, joining the company in 2007. He has witnessed its entire journey: from a small, ambitious startup to a publicly listed corporation, and ultimately, to the gaming powerhouse it is today following the monumental $4.9 billion purchase of Rational Group in 2014.
Chairman Divyesh Gadhia expressed sincere admiration for the outgoing Sebag, stating, “Danny has played a vital role in Amaya’s achievements, and his dedication to the company is clear. He departs Amaya as a genuine pioneer in the international gaming sector, well-prepared for sustained expansion. On behalf of the entire organization, I extend our gratitude for his numerous contributions and wish him the very best in his retirement.”
