Quarter highlighted by 285% revenue growth, completion of CryptoLogic acquisition, and $107 million financing
MONTREAL, Aug. 29, 2012 /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 six months ended June 30, 2012. All amounts are stated in Canadian dollars unless otherwise noted.
|FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30|| Q2 2012
| Q2 2011
| YTD 2012
| YTD 2011
|Net earnings (loss)||(2,724,440)||(1,108,123)||(7,282,495)||(2,929,785)|
|Basic earnings (loss) per share||(0.05)||(0.03)||(0.14)||(0.07)|
OTHER RECENT HIGHLIGHTS
- Amaya deployed over 800 Mosino gaming terminals during the second quarter, bringing the worldwide total to over 4,660 units.
- Amaya and CryptoLogic have recently announced contract extensions or expanded relationships with four customers.
- Ladbrokes PLC, a world-leader in the global betting and gaming market, will launch at least 10 of CryptoLogic's award winning casino games to join the two games that went live under the previous deal.
- BetClic Everest Group, one of the world leaders in online gaming, will launch a minimum of eight CryptoLogic casino slot games, to be available on such Everest brands as EverestCasino.com, ImperialCasino.com and Casinoelegance.com.
- Betsson Malta Ltd, a leading European e-gaming operator with a total active player base of more than 400,000 players across 10 gaming websites, will have access to a portfolio of more than 100 of CryptoLogic's most popular casino games through CryptoLogic's Instant Click platform, and the right to launch any new CryptoLogic content going forward.
- Belgium's Circus Services SPRL, under which Amaya will supply its proprietary and branded games on the Amaya platform to the Casino777.be website, one of Belgium's first regulated online gaming sites under its new legislation and a premium online gaming destination in the country.
- On July 3, 2012 CryptoLogic announced the launch of three new slot games, Fire Flies, Captain Nemo, and Monte Cristo, the industry's first game combining the features of a casino and casual game. These games will initially go live at InterCasino.com, and will also be made available to CryptoLogic's other licensees with a view to rolling them out on popular gaming sites through 2012 and 2013.
- The Corporation raised gross proceeds of $107,408,430 in a private placement totaling 26,520,400 common shares issued at a price of $4.05. The funds were raised through a group of agents including Canaccord Genuity Corp., BMO Capital Markets, Desjardins Securities Inc., Union Securities Ltd., BayFront Capital Partners Ltd. and Cormark Securities Inc., who were paid an aggregate commission of approximately $2.2 million. The base offering of $103.5 million closed on June 27, 2012, and an additional offering of $3.9 million closed on July 12, 2012.
- The Corporation announced on July 31, 2012 that it had control of all of the issued and outstanding shares of CryptoLogic and that the shares of CryptoLogic were delisted from the Toronto Stock Exchange.
"We continue to deliver very strong revenue growth achieved both organically and through acquisition," said Mr. David Baazov, President and Chief Executive Officer of Amaya Gaming Group. "The successful implementation of our growth strategy has led to a larger and more diversified customer base, as well as a more comprehensive product offering that improves our competitive position. Our recently completed financing provides us the resources to continue to execute and pursue some significant opportunities available in our industry."
1 Adjusted EBITDA as defined by the Corporation means earnings before interest and financing costs (net of interest income), income taxes, depreciation and amortization, stock-based compensation, restructuring and other non-recurring costs, and non-controlling interests. Adjusted EBITDA is a non-IFRS measure.
Amaya reported revenues of $14.548 million for the second quarter of 2012, an increase of $10.77 million or 285% compared to $3.77 million of revenues in the second quarter of 2011. This revenue growth is primarily due to the Corporation's sales of its proprietary Mosino gaming system, and the inclusion of software licensing and hosted casino revenues from Chartwell and CryptoLogic. On a regional basis, revenue growth was concentrated in Europe and the Caribbean. For the six month period ended June 30, 2012, revenues were $20.92 million, an increase of $16.01 million or 326% compared to $4.91 million in the first six months of fiscal 2011.
Gross profit was $14.08 million in the second quarter of 2012, representing 97% of revenues, compared to $3.55 million or 94% of revenues in the second quarter of 2011. The increase in gross profit percentage was due to product sales mix, and in particular the inclusion of a greater proportion of high-margin software licensing revenue. For the year-to-date period, gross profit was 97% for the first six months of 2012, compared to 95% in the same period of 2011.
Selling and marketing expenses were $3.53 million in Q2 2012, an increase of 53% from $2.30 million in Q2 2011. The increase is primarily due to the inclusion this year of expenses associated with the Chartwell and CryptoLogic businesses. On a year-to-date basis, selling and marketing expenses were $5.33 million in 2012 compared to $4.24 million in 2011.
General and administrative expenses were $12.40 million Q2 2012, compared to $2.13 million in Q2 2011. The increase was driven by a growing employee base due to recent acquisitions, fully staffed operations in Kenya, Uganda, Moldova, Armenia, and Dominican Republic, consulting fees, amortization costs, and charges associated with the termination of certain agency and employment agreements. For the six-month period, general and administrative expenses were $20.10 million in 2012 compared to $3.81 million in 2011.
Adjusted EBITDA was $1.17 million in the second quarter of 2012, a $1.64 million improvement compared to an adjusted EBITDA loss of $(0.47) million a year earlier, and a $1.89 million improvement from $(0.72) million in the first quarter of 2012. Adjusted EBITDA was $0.45 million in the first half of 2012, an improvement of $3.02 million from a $(2.56) million EBITDA loss in the first half of 2011. Adjusted EBITDA in the first half of 2012 excludes the impact of $2.47 million of acquisition-related costs, and $2.17 million of costs incurred to terminate certain agency and employment agreements.
Amaya had cash and cash equivalents of $109.24 million at June 30, 2012, compared to $3.05 million at December 31, 2012. The Corporation's long-term debt included $26.19 million of convertible debentures and $0.58 million of subordinated debt.
2012 SECOND QUARTER 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 six-month periods ending June 30, 2012, will be available on the SEDAR website at www.sedar.com.
AMENDMENT TO EMPLOYEE STOCK OPTION PLAN
In addition, on August 23, 2012, the Board of Directors of Amaya approved certain modifications to the stock option plan of Amaya (the "Stock Option Plan") to increase the number of common shares of Amaya reserved for issuance under the Stock Option Plan from 4,500,000 to 7,752,005. The modifications to the Stock Option Plan have been approved by the TSX Venture Exchange on August 27, 2012.
ABOUT AMAYA GAMING GROUP INC.
Founded in 2004, Amaya Gaming Group Inc. is a technology based gaming provider for the regulated gaming industry. An expansive global organization, present in North America, Latin America, Europe, Africa and Asia, Amaya is an innovator in the gaming world.
Headquartered in Montreal, Canada, Amaya provides a host of services and solutions that range from: online and mobile gaming casino games and platforms, traditional and mobile lotteries, networked electronic gaming systems, hospitality in-room entertainment systems, management systems, content suites, advisory and management services, and integrity monitoring and auditing systems for the regulated gaming markets. For more information please visit www.amayagaming.com or www.amayaonline.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
The Equicom Group
416-815-0700 ext. 261