BUSINESS

Amaya says it expects 2015 earnings at top end of previous guidance

TAGs: Amaya Gaming

amaya-earnings-guidanceCanadian online gambling operator Amaya Gaming says its 2015 earnings will likely come in at the top end of previous forecasts.

In a fiscal update issued on Thursday, Amaya said it expects revenue, adjusted earnings and pro forma adjusted net earnings to all fall “within the upper end” of previously issued guidance. In November, Amaya said FY 15 revenue would come in between C$1.29b and $1.34b, while earnings would range from $552m to $572m.

For the record, those November figures represented a reduction from previous guidance, which had revenue coming in between $1.45b and $1.56b, while earnings were supposed to range from $600m to $650m.

Amaya said there were no material changes to the assumptions used to determine either the November guidance or the latest update. Amaya has yet to set a date to reveal its official Q4 and FY 15 numbers.

Amaya’s stock hit a 52-week low on Wednesday, closing out trading at C$14.52. The stock was up around 5% to $15.20 at time of writing.

Amaya shares hit $37.28 on Feb. 25, 2015 but the shares took a nosedive following last November’s earnings cut. Since then, the company has been battered by a series of headwinds, including a US $870m judgment in the state of Kentucky, a series of player boycotts over changes to VIP benefits at its flagship PokerStars site and the ongoing stagnation of the US state-level online gambling legislative push.

Amaya is counting on non-poker verticals to pull its feet from the fire. The company is prepping a major marketing campaign for its new BetStars sports betting brand, which has promised innovative features like the new Spin & Bet product. Amaya is also expecting good returns from the expansion of its casino product in both the number of gaming options and markets in which it’s available. Finally, Amaya expects some good press, if not any real serious addition to revenue, from its New Jersey launch at some point over the next few months.

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