Successful deployment of SMS lottery technology to generate growing
MONTREAL, June 30, 2011 /CNW Telbec/ - Amaya Gaming Group Inc. (TSXV: AYA), an entertainment solutions provider for the regulated
gaming industry announced today its 2011 first quarter financial
Net earnings (loss) and comprehensive income (loss)
Basic and diluted earnings ( loss) per share
OTHER RECENT HIGHLIGHTS
On January 24, the Corporation obtained a second public lottery permit
from the Government of Kenya to operate and promote a public lottery in
the Republic of Kenya. Under the terms of this second permit granted by
the Government of Kenya, Amaya shall operate a 6/48 lotto game and
instant scratch card lotteries.
On January 26, the Corporation added Mexico, Central America, the
Caribbean and various South American countries as new territories
covered under the existing licensing agreement between Amaya and the
Société des Bingos du Québec ("SBQ") for the distribution of Bingo
Mundo a proprietary bingo lottery software.
On February 17, the Corporation launched its Short Message Service (SMS)
Lottery ("SMS Lotto") in the Republic of Kenya which has an estimated
20 million mobile phone users.
On February 24, the Corporation secured a license to operate online
gaming in the Dominican Republic.
On March 1, the Corporation was selected by the Betting Control and
Licensing Board of Kenya to operate online gaming. This selection has
been granted on an exclusive basis to evaluate the merits, potential,
and prevalence of online gaming, as well as to ensure that those who
are under-aged cannot have access to online gaming in the Republic of
Commenting on the quarterly results, Mr. David Baazov, President and
Chief Executive Officer of Amaya Gaming Group said "the successful
launch of our SMS Lottery in the Republic of Kenya demonstrates our
capacity to execute on our strategic corporate initiatives by
effectively penetrating and developing new markets. Amaya's government
solution offering was further strengthened by the grant of a
Nation-Wide Lottery Permit in Kenya and a license to operate online
gaming in the Dominican Republic. We believe the continued investment
in expanding and implementing our solutions will enable the company to
grow revenue and increase earnings in 2011."
Amaya posted revenues of $1.14 million for the first quarter of 2011, a
23% decrease compared to $1.48 million in the first quarter of 2010.
The decrease reflects the Corporation's efforts to gain traction of its
solutions aimed at the hospitality and government sectors.
The net loss for the first quarter of 2011 totaled $1,821,662, or $0.05
per share, compared to net earnings of $449,063, or net earnings of
$0.02 per share for the same 2010 period. The net loss for the first
quarter of 2011 is primarily attributable to increases in sales and
marketing and administrative expenses incurred in connection with the
SMS Lottery operation in the Republic of Kenya.
Amaya's gross profit was 99% for the three-month period ending March 31,
2011 and 83% for the three-month period ending March 31, 2010. Gross
profit levels achieved in the first quarter of 2011 were primarily
driven by software licensing agreements.
Sales and marketing expenses were $1.92 million for the first quarter of
2011, compared to $0.21 million for the same 2010 period while general
and administrative expenses were $1.42 million for the first quarter of
2011, compared to $0.50 million for the same 2010 period. The
year-over-year increases are mainly attributable to advertising,
marketing, and prize pool funding for the SMS Lottery operation in the
Republic of Kenya as well as a growing employee base and a fully
staffed operation in the Republic of Kenya.
2011 FIRST QUARTER FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND
The complete financial statements, notes to financial statements and
Management's Discussion and Analysis for the three-month period ending
March 31, 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 |
President and Chief Executive Officer
Amaya Gaming Group Inc.
North America: 1-866-744-3122
| Pierre-Paul Côté |
Director of Communications
Amaya Gaming Group Inc.
North America: 1-866-744-3122