MONTREAL, Jan. 20, 2017 /CNW/ - Amaya Inc. (Nasdaq: AYA;
TSX: AYA) today updated its previously announced guidance ranges
for the full year 2016, provided related performance and
operational highlights, and announced the retirement of its Chief
Financial Officer, Daniel Sebag. All
dollar ($) amounts are in U.S. dollars.
2016 Guidance and Related Highlights
Amaya has updated its full year 2016 guidance ranges, as
previously announced on November 14,
2016, and currently expects the following:
- Revenues at the high end of the previous range and
between $1,153 and $1,158 million, as
compared to the previous range of between $1,137 and $1,157 million, and as compared to
approximately $1,072 million in
2015;
- Adjusted EBITDA above the previous range and between
$521 and $526 million, as compared to
the previous range of between $500 and $510
million, and as compared to approximately $459 million in 2015;
- Adjusted Net Earnings above the previous range and
between $364 and $374 million, as
compared to the previous range of between $344 and $354 million, and as compared to
approximately $291 million in 2015;
and
- Adjusted Net Earnings per Diluted Share above the
previous range and between $1.87 and
$1.92, as compared to the previous range of between
$1.78 and $1.83, and as compared to
$1.47 in 2015.
These estimates reflect management's view of current and future
market conditions, including the assumptions used to determine the
previously announced guidance. There were no material changes to
such assumptions and they continue to apply to the update provided
in this release. Such update is based on unaudited expected results
and certain accounting assumptions, including, without limitation,
as it relates to income tax. Adjusted EBITDA, Adjusted Net Earnings
and Adjusted Net Earnings per Diluted Share are non-IFRS and
non-U.S. GAAP measures.
"We anticipate that 2016 will be a record year of revenues for
Amaya," said Rafi Ashkenazi, Chief Executive Officer. "We also saw
better than expected fourth quarter results from our casino
offering, operational excellence program and a successful re-launch
in Portugal, all while continuing
to take an efficient and measured approach to marketing our product
offerings.
"We built positive momentum in 2016 that accelerated throughout
the year and which we believe was largely the result of the
positive impact of our strategy to improve the poker ecosystem for
recreational players and leverage our global competitive advantage
in online poker to acquire new customers, cross-sell existing and
new customers into our online casino and sportsbook offerings, and
maximize the lifetime value of all of our customers.
"We expect to continue this momentum and execute on our strategy
in 2017 despite anticipated further headwinds, including continued
declines in the value of our customers' local currencies against
the U.S. dollar, which has been significant over the past two
years, and the previously announced potential cessation of our
real-money online poker offering in Australia," noted Ashkenazi. "We anticipate
that certain operational initiatives, including the introduction of
a new cross-vertical customer loyalty program, the potential
expansion into new markets, our continued focus on achieving
product parity in our online casino and sportsbook, and our
operational excellence program, will help to both drive our
business forward and mitigate these and future headwinds."
Amaya intends to announce the date and time for release of its
full year 2016 financial results along with related conference call
and webcast details in early March.
Certain Fourth Quarter 2016 Operational Highlights
- Quarterly Real-Money Active Uniques (QAUs) – Total
combined QAUs were approximately 2.6 million, an increase of
approximately 8% year-over-year. Approximately 2.5 million of such
QAUs played online poker during the quarter, an increase of
approximately 5% year-over-year, while Amaya's online casino
offerings had approximately 648,000 QAUs, an increase of
approximately 47% year-over-year, which Amaya continues to estimate
is one of the largest casino player bases among its competitors.
Amaya's emerging online sportsbook offerings had approximately
247,000 QAUs, an 88% increase year-over-year.
- Customer Registrations – Customer Registrations
increased by 2.6 million during the quarter to approximately 108
million at the end of the year.
Retirement of Chief Financial Officer and Certain
Appointments
Daniel Sebag has advised Amaya
that he will retire as Chief Financial Officer later this year once
his successor is identified and appointed, and will assist Amaya in
ensuring an orderly transition of his duties. The Board of
Directors has retained Spencer
Stuart, a leading executive recruiting firm, to advise the
Board and launch a global CFO search.
Mr. Sebag joined Amaya in 2007 as its first CFO and managed its
finances and accounting as a start-up through its initial public
offering and its transformation to a consumer technology company
through the $4.9 billion Rational
Group acquisition in August 2014.
"Danny has been a passionate and dedicated steward of Amaya's
growth into a global gaming leader and helping to position it for
the future," said Divyesh (Dave)
Gadhia, Chairman of the Board. "On behalf of the
company, I would like to thank him for his contributions over the
years. We wish him all the best in his retirement."
Rational Group also recently announced several new appointments
to senior operational roles, including Guy
Templer, as Chief Operating Officer of Rational Group
(previously, Chief Strategy Officer of Rational Group), Bo
Wänghammer as Managing Director of Casino Operations (previously,
Business Development Director for Mr. Green & Co AB and CEO of
Mr. Green's operating company, Mr. Green Ltd.), and Zeno Ossko as Managing Director of Sportsbook
Operations (previously, CEO of MyBet Holding SE).
About Amaya
Amaya is a leading provider of technology-based products and
services in the global gaming and interactive entertainment
industries. Amaya ultimately owns gaming and related consumer
businesses and brands, including PokerStars, PokerStars
Casino, BetStars, Full Tilt, StarsDraft, and the PokerStars
Championship and PokerStars Festival live poker tour brands
(incorporating the European Poker Tour, PokerStars Caribbean
Adventure, Latin American Poker Tour and the Asia Pacific Poker
Tour). These brands together have more than 108 million
registered customers globally and collectively form the largest
poker business in the world, comprising online poker games and
tournaments, live poker competitions, branded poker rooms in
popular casinos in major cities around the world, and poker
programming created for television and online audiences. Amaya,
through certain of these brands, also offers non-poker gaming
products, including casino, sportsbook and daily fantasy sports.
Amaya, through certain of its subsidiaries, is licensed or approved
to offer, or offers under third party licenses or approvals, its
products and services in various jurisdictions throughout the
world, including in Europe, both
within and outside of the European Union, the Americas and
elsewhere. In particular, PokerStars is the world's most licensed
online gaming brand, holding licenses or related operating
approvals in 16 jurisdictions.
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking information and
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and applicable securities laws, including,
without limitation, certain financial and operational expectations
and projections, such as full year 2016 financial guidance and
expected performance, certain future operational plans and
strategies and growth expectations, CFO succession plans, and the
timing of Mr. Sebag's planned retirement and his assistance
with the transition to his successor, and certain senior
operational appointments. Forward-looking statements can, but may
not always, be identified by the use of words such
as "anticipate", "plan", "continue", "estimate", "expect",
"may", "will", "project", "predict", "potential", "targeting",
"intend", "could", "might", "would", "should", "believe",
"objective", "ongoing" and similar references to future
periods or the negatives of these words and expressions. These
statements are based on management's current expectations and are
subject to a number of risks, uncertainties, and assumptions,
including market and economic conditions, business prospects or
opportunities, future plans and strategies, projections,
technological developments, anticipated events and trends and
regulatory changes that affect us, our customers and our
industries. Although Amaya and management believe the expectations
reflected in such forward-looking statements are reasonable and are
based on reasonable assumptions and estimates, there can be no
assurance that these assumptions or estimates are accurate or
that actual results will not differ materially from those
expressed or implied in forward-looking statements. Forward-looking
statements are inherently subject to significant business,
regulatory, economic and competitive risks, uncertainties and
contingencies that could cause actual events to differ materially
from those expressed or implied in such statements. Specific
risks and uncertainties include, but are not limited to those
identified under the heading "Risk Factors and Uncertainties" in
Amaya's Annual Information Form for the year ended December 31, 2015 and "Risk Factors and
Uncertainties" and "Limitations of Key Metrics and Other Data" in
its Management's Discussion & Analysis for the three and
nine months ended September 30, 2016
(the "Q3 2016 MD&A"), each available on SEDAR at www.sedar.com,
EDGAR at www.sec.gov and Amaya's website at www.amaya.com, and in
other filings that Amaya has made and may make with applicable
securities authorities in the future. Investors are cautioned not
to put undue reliance on forward-looking
statements. Each forward-looking statement speaks only as
of the date hereof, and Amaya undertakes no obligation to correct
or update any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
applicable law.
Non-IFRS and Non-U.S. GAAP Measures
This news release references non-IFRS and non-U.S. GAAP
financial measures, including Adjusted EBITDA, Adjusted Net
Earnings, and Adjusted Net Earnings per Diluted Share. Amaya
believes these non-IFRS and non-U.S. GAAP financial measures will
provide investors with useful supplemental information about the
financial performance of its business, enable comparison of
financial results between periods where certain items may vary
independent of business performance, and allow for greater
transparency with respect to key metrics used by management in
operating its business. Although management believes
these financial measures are important in evaluating Amaya, they
are not intended to be considered in isolation or as a substitute
for, or superior to, financial information prepared and presented
in accordance with IFRS or U.S. GAAP. They are not recognized
measures under IFRS or U.S. GAAP and do not have standardized
meanings prescribed by IFRS or U.S. GAAP. These measures may be
different from non-IFRS and non-U.S. GAAP financial measures used
by other companies, limiting its usefulness for comparison
purposes. Moreover, presentation of certain of these measures is
provided for year-over-year comparison purposes, and investors
should be cautioned that the effect of the adjustments thereto
provided herein have an actual effect on Amaya's operating results.
Amaya uses the following non-IFRS and non-U.S. GAAP measures in
this release:
Adjusted EBITDA means net earnings (loss) from continuing
operations before interest and financing costs (net of interest
income), income taxes, depreciation and amortization, stock-based
compensation, restructuring and certain other items.
Adjusted Net Earnings means net earnings (loss) from continuing
operations before interest accretion, amortization of intangible
assets resulting from purchase price allocation following
acquisitions, deferred income taxes, stock-based compensation,
restructuring, foreign exchange, and certain other items. Adjusted
Net Earnings per Diluted Share means Adjusted Net Earnings divided
by Diluted Shares. Diluted Shares means the weighted average number
of common shares on a fully diluted basis, including options,
warrants and Amaya's convertible preferred shares. The effects
of anti-dilutive potential common shares are ignored in calculating
Diluted Shares. As of December 31,
2016 and for the purposes of the full year 2016 guidance
provided in this release, Diluted Shares equals 195,432,919. The
Diluted Share count used by Amaya in its previous guidance on
November 14, 2016 was as of
September 30, 2016 and equaled
193,866,395 and the Diluted Share count used for the full year 2015
was as of December 31, 2015 and
equaled 197,993,500.
For additional information on Amaya's non-IFRS measures, see
below and the Q3 2016 MD&A, including under the headings
"Management's Discussion and Analysis" and "Selected Financial
Information—Other Financial Information".
Amaya has not provided a reconciliation of the non-IFRS measures
to the nearest IFRS measures included in this release, including
Adjusted EBITDA, Adjusted Net Earnings and Adjusted Net Earnings
per Diluted Share, because certain reconciling items necessary to
accurately project such IFRS measures, particularly net earnings
(loss) from continuing operations, cannot be reasonably projected
due to a number of factors, including variability from potential
foreign exchange fluctuations impacting financial expenses, and the
nature of other non-recurring or one-time costs (which are excluded
from non-IFRS measures but included in net earnings (loss) from
continuing operations), as well as the typical variability arising
from the audit of annual financial statements, including, without
limitation, certain income tax provision accounting, and related
accounting matters.
Key Metrics and Other Data
Amaya defines QAUs as active unique customers (online,
mobile and desktop client) who generated rake, placed a bet or
otherwise wagered (excluding free play, bonuses or other
promotions) on or through an Amaya poker, casino or sportsbook
offering during the applicable quarterly period. Amaya defines
unique as a customer who played at least once on one of Amaya's
real-money offerings during the period, and excludes duplicate
counting, even if that customer is active across multiple verticals
(e.g., both poker and casino). Beginning with its second quarter
2016 results, Amaya no longer provides PokerStars-only QAUs as a
result of the recently completed migration of the Full Tilt brand
and customers to the PokerStars platform.
Amaya defines Customer Registrations as the cumulative number of
real-money and play-money customer registrations on PokerStars,
Full Tilt and related brands.
For additional information on Amaya's key metrics and other
data, see the Q3 2016 MD&A, including under the headings
"Limitations on Key Metrics and Other Data" and "Key Metrics".
SOURCE Amaya Inc.