Amaya reveals net loss for 2015

rStars owner Amaya has reported a net loss of C$25.9m for 2015, down from net earnings of C$125.2m the previous year.

However adjusted net earnings improved 18% year-on-year to C$372.2m.

The firm said the adjusted figure represents the earnings/loss from continuing operations "before interest accretion, amortization of intangible assets resulting from purchase price allocation following acquisitions, stock-based compensation, restructuring, foreign exchange, and other non-recurring costs".

CEO David Baazov specifically highlighted "challenges" relating to foreign exchange and product rollout.

Revenue increased 8% to C$1.37bn, while adjusted EBITDA rose 11% to C$586.9m.

Amaya said that excluding the impact of year-over-year changes in foreign exchange rates, total yearly revenue would have increased 15%, with real-money online revenue rising 15%.

During the year Amaya reduced its total long-term debt from approximately US$3.16bn with a weighted average interest rate of 6.38% to approximately US$2.59bn with a weighted average interest rate of 5%.

The firm expects interest and debt principal payments to be approximately US$173m in 2016.

For Q4 2015, the three months ended 31 December, net loss from continuing operations was C$15.8m, down from net earnings of C$35.6m the previous year.

Adjusted net earnings were up 27% to C$111.3m.

Revenue improved 15% to C$389.5m, with adjusted EBITDA increasing 16% to C$166.2m.

Amaya said that excluding the impact of year-over-year changes in foreign exchange rates, quarterly revenue would have increased 12%, with real-money online revenue rising 13%.

Revenue from real-money online poker made up approximately 78% of the quarterly total, down from 93% in Q4 2014.

Combined real-money casino and sportsbook revenue represented 17%, up from 3%.

The remaining revenue is comprised of other offerings including social and play-money gaming, live poker events, branded poker rooms and daily fantasy sports.

“Throughout 2015 we successfully executed on our strategy of diversifying our operations while maintaining market dominance in poker,” said Amaya Chairman and CEO David Baazov.

“Despite significant foreign exchange and product rollout challenges, we achieved positive growth on a constant currency basis and, through investments and initiatives that will continue through 2016, have laid the foundation for becoming a leader across multiple gaming verticals.”

Amaya estimates that unaudited consolidated revenues for the first two months of 2016 were approximately US$189m, representing a year-on-year increase of approximately 4%.

Excluding the impact of year-over-year changes in foreign exchange rates, Amaya estimates the figure to be US$208m, an upturn of approximately 14%.

Of those revenues, 75% was attributed to real-money online poker estimated revenues and 21% to real-money online casino and sportsbook combined estimated revenues.