Amaya cites PokerStars’ success with revenue set to climb in Q3

Amaya has forecast year-on-year revenue growth for the three months through to September 30, citing the ongoing success of its PokerStars business as one of the key reasons behind the increase.

The company said that revenue should amount to between $268 million (€243.7 million) and $273 million for the third quarter, compared to $247 million in the same period last year.

Although online poker remains the main source of income for Amaya, with 73% of revenue generated by the vertical, this amount is down on the 81% share last year, with online casino and sports betting revenue up from a share of 15% to 24%.

The total of combined quarterly real-money active uniques is expected to rise by 5% year-on-year to 2.4 million, while quarterly net yield looks set to increase by between 4% and 5% to $110 to $111.

The preliminary results place full-year revenue forecasts at between $1.1 billion and $1.2 billion, with adjusted net earnings before interest, tax, depreciation and amortisation expected to come in at between $490 million and $510 million.

In addition, adjusted net earnings are set to amount to between $332 million and $352 million, while adjusted net earnings per share are forecast to total between $1.71 and $1.82.

Publication of the preliminary results come after Amaya concluded discussions with William Hill over a potential merger deal.

Rafi Ashkenazi, chief executive of Amaya, said: “We anticipate our third quarter performance will continue to demonstrate the improving strength of PokerStars' core poker business, as well as continued growth in our new verticals of online casino and sports betting.

“Since earlier this year, our four strategic priorities remain the same: grow our leadership position in online poker, become a leader in online casino, build a competitive online sportsbook, and achieve operational excellence by improving efficiency and effectiveness throughout the organisation.

“We are focused on applying our industry leading technology platform to best serve our customers and deliver high-quality customer service and a superior gaming and entertainment experience, while continuing to deliver on our overall strategy and corporate objectives for the benefit of our shareholders.”

Related article: Amaya and William Hill end merger talks