Amaya posts record revenues

PokerStars owner bullish on growth despite recent string of setbacks

The Montreal-based parent of PokerStars and other online gaming operations anticipates another year of strong growth after posting record revenues in 2016 despite a series of setbacks including allegations of insider trading involving its founder.

In addition to securities charges against former chairman and CEO David Baazov, Amaya Inc. has also faced a lengthy strategic review, high senior executive turnover and regulatory scrutiny.

“The operations of the company were largely unaffected by the headwinds we faced in 2016,” CEO Rafi Ashkenazi said Wednesday during a conference call after the company’s latest earnings report.

Baazov recently sold some of his shares in Amaya. He faces trial in November following an investigation into allegations of insider trading. Baazov has pleaded not guilty.

The company is refilling its senior executive team, including the hiring of a new chief financial officer, and plans to devote more money to marketing and improved investor relations and communications, Ashkenazi said.

“The Amaya you see today is quite different than the Amaya of 2015 and by the end of this year we expect to have opened a new chapter in our growth story,” he said.

Shareholders will also be asked to approved a name change at the next annual meeting this summer, Ashkenazi told analysts.

Amaya swung to a US$45 million net profit or 23 cents per share for the fourth quarter ended Dec. 31, up from a year-earlier loss of $15.2 million or 11 cents per share. Revenue increased 5.9 per cent to US$310.4 million.

Adjusted earnings for the quarter were up 30 per cent to US$107 million or 53 cents per share. That’s three cents above a consensus estimate compiled by Thomson Reuters. Revenue was also slightly above the analyst estimates. For the full year, it earned US$366.7 million of adjusted earnings. It is estimating that will rise this year to between US$400 million and US$430 million.