A prominent force in the online gaming sector, Amaya Gaming, recently declared an optimistic adjustment to their fiscal forecast for 2016. This announcement follows closely behind the news of their CFO, Daniel Sebag’s, upcoming retirement.
The corporation now anticipates revenues to reach the upper limit of their prior projections, ranging from $1.153 billion to $1.158 billion. For comparison, their original estimates were between $1.137 billion and $1.157 billion, while their 2015 revenue concluded at $1.072 billion.
The positive adjustments are not limited to revenue alone. Amaya also foresees their EBITDA surpassing previous calculations, settling somewhere between $521 million and $526 million. This marks a substantial rise from their initial prediction of $500 million to $510 million and is notably greater than their 2015 EBITDA of $459 million.
This upward trajectory extends to their adjusted net income, which is also projected to outpace earlier forecasts. Amaya now predicts it will land between $364 million and $374 million, a considerable increase from the initial projection of $344 million to $354 million, and a significant jump from their 2015 figure of $291 million. Consequently, adjusted diluted net earnings per share are anticipated to reach between $1.87 and $1.92, exceeding the initial forecast of $1.78 to $1.83, and considerably higher than the $1.47 reported in 2015.
Amayas chief executive, Rafi Ashkenazi, conveyed significant confidence regarding the firm’s 2016 results, forecasting unprecedented earnings. He ascribed this triumph to surpassing projections in the final quarter, fueled by operational enhancements and the prosperous reintroduction of their products in Portugal. Ashkenazi stressed their dedication to focused product marketing and underscored the company’s favorable momentum throughout the year.
He attributed this expansion to Amaya’s strategic emphasis on improving the poker environment for recreational players, utilizing their worldwide dominance in online poker to draw in new clients, and effectively transitioning both new and current players to their casino and sports betting offerings. This strategy, he observed, aimed to optimize the long-term worth of their clientele.
Anticipating 2017, Ashkenazi recognized potential obstacles, including the ongoing fragility of specific currencies relative to the US dollar and the potential cessation of real-money online poker services in Australia. Notwithstanding these impediments, he voiced assurance in Amaya’s capacity to sustain its growth path and realize its strategic objectives.
Were genuinely thrilled about several significant strides we’re undertaking, including a completely revamped loyalty scheme applicable to all our offerings, investigating fresh territories to penetrate, guaranteeing our internet-based casino and sports wagering options are first-rate, and our strategy to operate even more effectively. We’re confident these endeavors will propel our expansion and equip us to address any obstacles we encounter.
The precise date and time for our comprehensive fiscal year 2016 results disclosure will be revealed in the early part of March.
Reviewing the fourth quarter of 2016, we observed an 8% surge in engaged patrons compared to the previous year, approaching approximately 2.6 million. Close to 2.5 million of those patrons engaged in online poker, a 5% rise, while our casino products drew in around 648,000 active participants, a remarkable 47% upswing. Our recently introduced sports betting platform also fared well, registering 247,000 active users, an extraordinary 88% expansion.
This particular quarter also witnessed a spike in fresh customer registrations, adding 2.6 million and elevating our overall user base to a substantial 108 million by the year’s conclusion.
In other news, Daniel Sebag has opted to relinquish his role as our CFO later this year, once we’ve secured a fitting successor. He’s dedicated to ensuring a seamless transition, and we express our gratitude for his commitment.
Amayas leadership team has enlisted the help of top executive recruitment agency, Spencer Stuart, to aid in their search for a new Chief Financial Officer.
Sebag, who joined Amaya in 2007, has experienced a remarkable tenure. He guided the company’s transformation from a small startup into a publicly traded industry leader, and later skillfully managed the intricate $4.9 billion acquisition of the Rational Group in 2014.
Divyesh Gadhia, Amaya’s Chairman, expressed sincere gratitude for the departing CFO: “Danny’s impact on Amaya’s growth into a global gaming giant is immeasurable. He has established a strong base for us, and on behalf of the entire organization, I extend our thanks for his years of commitment. We wish him the very best in his retirement.”
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