PokerStars parent cuts 2015 revenue, profit estimates; cites strong U.S. dollar

PokerStars parent cuts 2015 revenue, profit estimates; cites strong U.S. dollar

MONTREAL — The company that runs the PokerStars online gambling business is lowering its financial expectations for 2015, in part because the stronger U.S. dollar has sapped the purchasing power of its customer base and eaten into revenue.

Montreal-based Amaya Inc. (TSX:AYA) has reduced its revenue estimate for 2015 to a range of between $1.289 billion and $1.339 billion — a decline of about 13 per cent at the mid-point.

Amaya is also lowering its profit estimates for this year, to a range of between $1.66 and $1.75 per diluted share of adjusted earnings, which is below the previous range of between $1.76 and $2 per diluted share.

The revised guidance was included in Amaya’s third-quarter financial report, which met analyst estimates in terms of adjusted net earnings per share but fell short on revenue.

Amaya said its third-quarter revenue was $324.7 million, up from $299.5 million a year ago, and adjusted net earnings per share was 44 cents or $90.5 million, up from 38 cents per share or $79.8 million.

The revenue was $37.3 million or about 10 per cent below the general estimate of $362 million, according to Thomson Reuters.

Amaya said that it was required to suspend real-money operations in July because of a new regulatory regime and in Greece becasue of the severe economic slowdown there. Last year, Amaya generated at total of US$9 million from those two countries and 30 other jurisdictions where Amaya has suspended operations.

The Canadian Press

Categories: Business

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