Amaya Gaming Group announces its 2011 third quarter financial results

Revenue grows 171% over Q3 2010

MONTREAL, Nov. 29, 2011 /CNW/ - Amaya Gaming Group Inc. (TSX.V: AYA), an entertainment solutions provider for the regulated gaming industry, today announced its financial results for the three and nine month periods ended September 30, 2011. All amounts are stated in Canadian dollars unless otherwise noted.

FINANCIAL HIGHLIGHTS

FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30 Q3 2011
$
Q3 2010
$
YTD 2011
$
YTD 2010
$
Revenues 3,973,552 1,464,817 8,885,168 3,952,626
Net earnings (loss) (1,815,016) 100,622 (4,744,337) 608,437
Basic and diluted earnings (loss) per share (0.04) 0.01 (0.11) 0.03

OTHER RECENT HIGHLIGHTS

  • On July 14, the Corporation completed its previously announced acquisition of Chartwell Technology Inc.("Chartwell") for consideration totalling $22.7 million. The combination of the two businesses is expected to result in synergies and new growth opportunities for both.

  • On September 6, 2011, the Corporation announced that it has been awarded an exclusive, 20-year contract with the National Lottery of Moldova to provide a full range of gaming solutions including lottery systems, video lottery terminals, sports betting, and digital gaming. The contract has the potential to generate recurring revenues in excess of $20 million annually.

  • On September 22, 2011, the Corporation officially launched the Kwachu 6/48 Lottery in the Republic of Kenya.

  • Over 1,900 Mosino hospitality entertainment systems were deployed during the third quarter, bringing the worldwide total to 2,300, with an order backlog of 500 Mosino deployments in progress.

  • On October 12, 2011, Chartwell announced an amendment to its license agreement with Shuffle Master Inc., allowing Chartwell the rights to offer Shuffle Master's popular Three Card Poker™ game to legal regulated online operators in the British Isles, including the United Kingdom, the Republic of Ireland, the Isle of Man, and the Channel Islands, which together comprise one of the world's largest online gaming markets.

  • On October 13, 2011 the Corporation successfully launched the official online gaming website of the Republic of Kenya, www.betkenya.com, only accessible to Kenyan residents.  All gaming content for the site is provided by Chartwell.

  • On October 26, 2011 the Corporation announced the official launch of the YoolaObukadde, or "Win Millions", its Short Message Service ("SMS") game in Uganda.

  • On November 14, 2011 the Corporation announced that it has been awarded an exclusive, 10-year contract with the Government of the Republic of Armenia to implement a national lottery program and to provide its central reporting and integrity software solutions. The national lottery program will be deployed through both traditional sales channels and SMS lottery.

"Our business has shown very strong momentum in recent months. The long-term agreements we have announced with governments in Moldova and Armenia have the potential to become our two largest contracts to date once the initiatives are fully implemented," said Mr. David Baazov, President and Chief Executive Officer of Amaya Gaming Group. "We also launched new recurring revenue gaming solutions in Kenya and Uganda.  While these programs are now generating revenues for us, the impact was negligible in the third quarter due to the timing of the launches.  The 171% year-over-year growth we reported in the third quarter was attributable to the addition of the Chartwell business, as well as Mosino and other aspects of our business which are also progressing quite well."

FINANCIAL RESULTS

Amaya reported revenues of $3.97 million for the third quarter of 2011, an increase of $2.51 million or 171% compared to $1.46 million of revenues in the third quarter of 2010. This revenue increase reflects the Corporation's sales of its proprietary Mosino hospitality entertainment system and the inclusion of Chartwell's software licensing revenue for the majority of the quarter. For the nine-month period ending September 30, 2011, revenues were $8.89 million, an increase of $4.93 million or 125% compared to $3.95 million of revenues in the same period of 2010.

Amaya's gross profit was 96% in the third quarter of 2011, compared to 81% in the third quarter of 2010. The increase in gross profit percentage was primarily driven by the inclusion of Chartwell's high-margin software licensing revenue. For the year-to-date period, gross profit was 95% for the first nine months of 2011, compared to 81% in the same period of 2010.

Sales and marketing expenses were $1.28 million for the third quarter of 2011, compared to $0.17 million a year earlier.  The $1.11 million increase is a result of selling expenses incurred by recently acquired subsidiary Chartwell, an increased effort to obtain additional agreements to provide diversified gaming solutions to governments, and complying with certain license requirements in the Republic of Kenya. On a year-to-date basis, sales and marketing expenses were $5.52 million in 2011 compared to $0.75 million in 2010.

General and administrative expenses were $4.34 million for the third quarter of 2011, compared to $1.02 million in Q3 2010. The increase was driven by a growing employee base, fees associated with the Chartwell acquisition, and the costs of establishing fully staffed operations in the Republics of Kenya and Uganda. For the nine-month period, general and administrative expenses were $8.14 million in 2011 compared to $2.35 million in 2010.

Amaya recorded a net loss of $1.82 million in the third quarter of 2011, representing ($0.04) per share, compared to net earnings of $0.10 million or $0.01 per share in the third quarter of 2010. On a year-to-date basis, a net loss of $4.74 million in 2011 compares to net earnings of $0.61 million in the first nine months of 2010. While revenues have grown significantly in 2011, net loss has increased as a result of the significant operating expenses the Corporation has incurred while investing in its continued growth.

2011 THIRDQUARTER FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS

The complete financial statements, notes to financial statements and Management's Discussion and Analysis for the three- and nine-month periods ending September30, 2011, are available on the SEDAR Website at www.sedar.com

ABOUT AMAYA GAMING GROUP INC.

Amaya is engaged in the design, development, manufacturing, distribution and sale of technology based gaming solutions for the regulated gaming industry worldwide. For more information please visit www.amayagaming.com

DISCLAIMER IN REGARDS TO FORWARD-LOOKING STATEMENTS

Certain statements included herein, including those that express management's expectations or estimates of our future performance constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward looking statements. Except as required by law, the Corporation does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

SOURCE AMAYA GAMING GROUP INC.

For further information:

Mr. David Baazov  Jeff Codispodi
President and Chief Executive Officer  The Equicom Group
Amaya Gaming Group Inc.  416-815-0700 ext. 261
North America: 1-866-744-3122 jcodispodi@equicomgroup.com
Worldwide:1-514-744-3122 
http://www.amayagaming.com 

 

Profil de l'entreprise

AMAYA GAMING GROUP INC.

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