What does the acquisition of the Rational Group, and all of their toys, mean to Amaya Gaming Group Inc.?
For the remainder of the financial year you can confidently say about three times as much as they were expecting to pull in prior to the deal of the online poker century.
The most talked about online gambling company in the world has just announced its financial results for the three to six month period ending June 30, 2014, and they also included a revised forecast that takes into consideration five months of consolidated Rational Group’s results.
The second quarter was a transformative period for Amaya,” stated Amaya CEO David Baazov.
The understatement of the year.
Acquisition shocks iGaming industry
Amaya Gaming’s $4.9 billion acquisition of The Rational Group not only made Isai Scheinberg one of the youngest billionaires in the world, but sent shockwaves through the entire online gambling industry.
It’s still shaking today.
The figures were a vast improvement on 2013 with a reported $2.9m net loss compared to the $11.4m that was lost this time last year. Revenue for the three months ending June 30 was up, though, with $42.5m representing a 14% increase year-on-year.
The rise in revenue was due to an increase in gaming machines sold outright, and consolidating revenue from Diamond Game Enterprises, which was acquired in Feb 2014.
Revenue for the six-month period ending June 30, 2014 was $83.65m, a decent climb from the $75.31m it earned last year. In even better news, revenue is set to triple in the remainder of 2014 with a revised forecast of between $669m – $715m expected to hit the books, and not the $193m – $203m that was forecast prior to the acquisition.
Amaya poised for further growth
In the commentary supporting the results, Baazov made it very clear that the acquisition of the PokerStars and Full Tilt brands gives them a decisive edge for growth in the sports book and online casino market.
The worldwide recognition of the PokerStars and Full Tilt brands, bolstered by being the largest producer of live poker tours and events across the globe and producer of televised and online poker programming, also provides Rational with an enormous opportunity to take advantage of adjacency opportunities in online casino and sports book, in jurisdictions where they can be offered -while growing in new geographies,” Baazov continued. “Amaya is committed to supporting these growth initiatives. However, with respect to the new verticals, we are determined that they not provide any disruption to the core poker offering and that the new vertical offerings are as robust and enjoyable as Rational’s online poker.”
The acquisition of The Rational Group stole the thunder from Amaya’s subsidiary, Cadillac Jack. The games and systems provider received approval from New Jersey Division of Gaming Enforcement (DGE) to utilize its Genesis DV1 slot machine platform in the state, obtained transactional waivers to ship machines over to Atlantic City, and also obtained approval to do business in Wisconsin and Louisiana.
Lastly, Amaya also pointed to the integration of its Casino Gaming System as another crucial reason the numbers were up. With deals inked with Bwin.party’s European websites, Cherry AB’s websites, Ultimate Gaming in New Jersey, and Rational Group’s Full Tilt Poker.