Amaya Gaming Release Q4 Earnings For 2014
Amaya Gaming have just announced their Q4 earnings for 2014 and the results certainly justified their $4.9 billion dollar deal last year which saw them acquire PokerStars.
While poker is seen as a core part of Amaya’s business plans, CEO David Baazov has made it clear that they intend to compete in other markets including casino and sports betting. Baazov announced that they will be entering the much talked about Daily Fantasy Sports market as early as the beginning of the next NFL season. He said,” We have also taken the strategic decision to enter the daily fantasy sports category and are pursuing parallel tracks of internal development and strategic acquisition. We expect to provide more details on this strategy in the second half of 2015 but see a clear cross over from poker and daily fantasy sports.”
The DFS market is becoming crowded and the monopoly DraftKIngs and FanDuel still have is set to change. We reported on the expected entry of Yahoo into Daily Fantasy Sports which will almost certainly trigger other major players like CBS to follow suite. The popularity of real money daily fantasy sports betting has caught the eye of corporate brands like Walt Disney who invested over $250 million in DraftKings. The fact that fantasy sports betting is legal in most U.S. states has caught the eye of traditional entertainment companies who realize the potential for growth.
Some of the highlights of Amaya’s Q4 results include revenues of $369 million in 2014 compared to the $37 million in the same quarter in 2013. Adjusted net earnings were $86 million compared to the $11 million in Q4 of 2013. Cashflow from operating activities increased to $56 million from the $3 million in 2013. Two million new customers were registered in Q4 with poker accounting for most of the core earnings. Baazov expects growth to continue in 2015.
Amaya’s expansion into sports betting, mobile table games and slots. He said,” Amaya intends to acquire new customers and gain online gaming market share through the continued expansion of the B2C business in other verticals, including sports betting, casino, social gaming and daily fantasy sports, which we expect will supplement our current growth plans for our core poker business.”