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.
FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30
Net earnings (loss)
Basic and diluted earnings (loss) per share
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
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
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
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
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.
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