Canada’s Amaya Gaming reported that its recent acquisition of PokerStars and Full Tilt have boosted the company’s bottom line, thanks to significant year-on-year revenue and income for the poker sites in the first half of 2014.
Amaya reports that Oldford Group, the holding company of the poker brands the company bought this year from Rational Group, generated net income of $218.4 million for the first half, up from $189.9 million for the same period last year. Revenues were $567.9 million, up from $545.9 million last year.
“We’re very pleased with the performance of PokerStars and Full Tilt in 2014,” said Amaya CEO David Baazov. “The core poker business continued to grow during the fist half of the year, and recorded strong cash flow.”
Part of the rise, he said, can be attributed to the introduction in September of a new poker variant called “Spin & Go” on the glocal.com network, following successful launches of the product in Italy, France and Spain; and the launch in space of online roulette and blackjack. Slots will be launched online in Spain next year.
Meanwhile, the company announced that it has initiated a strategic review process to explore alternatives for Amaya’s B2B land-based slot manufacturer, Cadillac Jack Inc. The strategic review will consider various alternatives for the company identified by Amaya’s and Cadillac Jack’s executive management, with the fundamental objective of expediting Cadillac Jack’s growth strategy and maximizing value for Amaya’s shareholders.
“In light of recent consolidation within the gaming machine supplier industry, we believe that this is an appropriate time to review and evaluate potential strategic alternatives for Cadillac Jack that may further maximize value for our shareholders” Baazov said.
“Cadillac Jack has matured greatly as a company under Amaya’s ownership,” added Mauro Franic, chief operating officer for Cadillac Jack. “We have developed a robust product library and enhanced our operational efficiencies. We will now consider alternatives that will accelerate our market expansion and add value to our current and prospective customers.”
Amaya has engaged Macquarie Capital and Deutsche Bank Securities Inc. as co-financial advisors to assist the company with the strategic review of Cadillac Jack.
“There can be no assurance that the company’s strategic review process will result in the consummation of any specific action,” the company said in a press release. “There is no defined timeline for the strategic review and the corporation does not intend to disclose additional information or further developments with respect to this process unless and until Amaya’s board of directors reviews and approves a specific action or otherwise deems further disclosure is appropriate or required.”
