Amaya Gaming Group announces its 2013 first quarter financial results

Amaya Gaming Group announces its 2013 first quarter financial results 
Revenue grows 496% on a year-over-year basis 
MONTREAL, May 28, 2013 /CNW/ - Amaya Gaming Group Inc. ("Amaya" or the 
"Corporation") (TSX.V: AYA), an entertainment solutions provider for the 
regulated gaming industry, today announced its financial results for the three 
months ended March 31, 2013. All amounts are stated in Canadian dollars unless 
otherwise noted. 
                                    Q1 2013     Q1 2012
FOR THE THREE MONTHS ENDED MARCH 31           $           $ 
Revenues                             38,053,247   6,384,037 
Adjusted EBITDA(1)                   10,264,017   (532,402) 
Net earnings (loss)                 (7,440,841) (4,558,054) 
Basic earnings (loss) per share          (0.09)      (0.09) 

    --  Cash provided from operating activities for the three month
        period ending March 31, 2013 was $7.48 million as compared to
        cash used for operating activities of $1.38 million for the
        three-month period ending March 31, 2012.
    --  Amaya announced today that its company Cadillac Jack has
        executed a multi-year agreement with one of its largest
        customers in Mexico to expand Cadillac Jack's leased install
        base by 890 gaming units across 13 locations throughout Mexico.
    --  During the first quarter, Amaya bought back 660,800 shares for
        $3.24 million pursuant to its approved normal course issuer bid
        under which Amaya intends to purchase for cancellation up to
        5,650,000 Common Shares, representing, to the knowledge of
        Amaya, less than 10% of the listed Common Shares held by
        shareholders that are not insiders, promoters or associates or
        affiliates of an insider of Amaya.
    --  The Corporation concluded the signing of the definitive
        agreement with SHFL Entertainment ("SHFL"), pursuant to the
        terms of the memorandum of understanding (MOU) entered into on
        December 17, 2012, under which Amaya selected SHFL as its
        exclusive distributor for its Ongame Poker Platform in the
        United States for a 10-year term.
    --  Amaya announced that it has expanded its agreement with mybet
        to include Amaya's Ongame Poker Platform and Live Dealer
        offering on mybet websites.
    --  Amaya announced that Cogetech S.p.A has chosen Amaya's Ongame
        Poker to power Cogetech is one of Italy's largest
        sportsbetting company and is both a leading gaming provider for
        the Italian land-based market as well as an online operator
        with the site, which
        includes betting, poker, skill games, bingo and casino games.
    --  The Corporation announced that it has entered into an MOU with
        Aristocrat Technologies Inc. ("Aristocrat") whereby Aristocrat
        will offer Amaya's leading Ongame poker platform to
        Aristocrat's U.S. customers through its award-winning
        nLive™ online gaming platform.
    --  Amaya announced the signing of a memorandum of understanding
        with Bally Technologies, Inc. to integrate Amaya's Ongame poker
        platform into Bally's award-winning iGaming Platform as its
        preferred poker provider in the emerging U.S. online gaming
    --  Amaya announced the launch of some of its most popular online
        casino slot games by Microgame S.p.A., the leading service
        provider for the remote gaming market in Italy.
    --  Amaya announced the launch of its full suite of proprietary and
        branded games on Circus Group's, one of Belgium's
        first regulated online gaming sites and the country's premier
        online gaming destination, pursuant to a three-year licensing
        agreement announced in July, 2012.
    --  Amaya announced an agreement with ACEP Interactive, LLC, the
        interactive gaming arm of Nevada-based American Casino &
        Entertainment Properties LLC ("ACEP") for Amaya's Ongame poker
        network to power ACEP's online poker offering at
    --  Amaya announced an extension of its agreement with Warner Bros.
        Consumer Products, on behalf of DC Entertainment, to be the
        exclusive provider of DC Comics comic book-inspired pay-to-play
        online casino games.
    --  Amaya closed a private placement of Units for aggregate gross
        proceeds of $30 million, with the Units consisting of: (i)
        $1,000 principal amount of unsecured non-convertible
        subordinated debentures bearing interest at a rate of 7.50% per
        annum payable semi-annually in arrears on January 31 and July
        31 in each year commencing July 31, 2013; and (ii) 48
        non-transferable common share purchase warrants (each a
        "Warrant"). Amaya also announced the issuance of a redemption
        notice to all the holders of its 10.5% convertible unsecured
        subordinated debentures due April 30, 2014 (the "Convertible
        Debentures"), all the holders of which converted their
        Convertible Debentures into common shares of Amaya and the
        Convertible Debentures were delisted from the TSX Venture
    --  Amaya was honoured as the TSX Venture Tech Stock of the Year
        and Amaya's CEO David Baazov was awarded with the TSX Venture
        Tech Executive of the Year in the third annual Cantech Letter

"We're extremely pleased with the substantial positive cash flow generated 
from our operations in the first quarter," said David Baazov, President and 
Chief Executive Officer of Amaya Gaming Group. "This is a strong focus of 
Amaya's management team.

"So far this year, we have expanded the reach of our interactive offering in 
the United States with the SHFL and Aristocrat partnerships, in addition to 
our relationship with Bally," said Mr. Baazov. "Nevada, New Jersey and 
Delaware have recently legalized some forms of pay-to-play online gaming, and 
a reported 10 other U.S. states have considered some form of Internet gambling 
this year. Gaming jurisdictions are moving towards regulatory frameworks that 
are evolving to adapt to the convergence of both interactive and land-based 
gaming operations. We are well positioned to capitalize on this evolving 
regulatory framework due to our technology, regulatory status and strategic 

"Additionally, we are continuing to integrate the acquisitions we made in 
2012, including Cadillac Jack and Ongame," Mr. Baazov added. "We will 
continue to focus on realizing on anticipated revenue and cost synergies from 
these additions throughout the rest of this year."


Amaya reported revenues of $38.05 million for the fourth quarter of 2012, an 
increase of 496% compared to $6.38 million in the first quarter of 2012. This 
revenue increase is primarily attributable: to consolidating the software 
licensing and hosted casino revenue of CryptoLogic Limited ("CryptoLogic"), 
which was acquired on April 2, 2012; consolidating software licensing revenue 
from Ongame Network Limited ("Ongame"), which was acquired on November 1, 
2012; and consolidating participation agreement revenue of Cadillac Jack Inc. 
("Cadillac Jack"), which was acquired on November 5, 2012. On a regional 
basis, revenue in Q1 2013 was concentrated in North America and Europe.

Gross profit percentage was 99% of revenues for the three months ended March 
31, 2013 and 96% for the three month period ended March 31, 2012.

Selling and marketing expenses increased from $1.81 million for the three 
month period ended March 31, 2012 to $3.73million for the three month period 
ended March 31, 2013, representing an increase of 106%, attributable to 
consolidating advertising, promotion and royalty expenses incurred by 
CryptoLogic and advertising and promotion expenses incurred by Cadillac Jack.

General and administrative expenses increased from $7.51 million for the three 
month period ended March 31, 2012, to $34.37 million for the three month 
period ended March 31, 2013, representing an increase of 358%. The increase in 
2013 was driven by a growing employee base and higher rent due to the 
CryptoLogic, Cadillac Jack, and Ongame acquisitions, and increases in 
amortization costs, consulting and professional fees, costs incurred in 
connection with the termination of employment agreements, communications 
expense in connection with generating CryptoLogic's hosted casino revenue, 
maintenance and repairs, and other costs.

Financial expenses were $6.21 million for the three month period ended March 
31, 2013 and $0.41 million for the three month period ended March 31, 2012. 
The increase is primarily attributable to interest on the convertible 
debentures related to the acquisition of Cryptologic, and the senior secured 
term loan in connection with the agreement and plan of merger to acquire 
Cadillac Jack.

Adjusted EBITDA was $10.26 million in the first quarter of 2013 compared to 
$(0.53) million in the first quarter of 2012 and $16.75 million in the fourth 
quarter of 2012. Q1 2013 adjusted EBITDA excludes $2.66 million in one-time 

Adjusted EBITDA Reconciliation

|                                  Net Income|   -7,440,841|
|Financial expenses                          |    6,212,059|
|Current income taxes                        |      689,914|
|Deferred income taxes                       |       64,502|
|Depreciation of property and equipment      |    3,395,010|
|Amortization of deferred development costs  |      131,482|
|Amortization of intangible assets           |    4,125,252|
|Stock-based compensation                    |      431,622|
|                                      EBITDA|    7,609,000|
|Termination of employment agreements        |    1,447,829|
|Termination of agency agreements            |      100,834|
|Acquisition-related costs                   |      309,479|
|Receivables related to terminated operations|      497,668|
|Other one-time costs                        |      299,207|
|                             Adjusted EBITDA|   10,264,017|


For the full year of 2013, the Corporation is expecting:
    --  Revenue in the range of $156 to $167 million
    --  Adjusted EBITDA in the range of $55 to $64 million


The quarterly financial statements, notes to financial statements and 
Management's Discussion and Analysis for the three months ended March 31, 
2013, will be available on the SEDAR website at


Amaya will host a conference call on Wednesday, May 29, 2013 at 9:00 a.m. ET 
to discuss its 2013 first quarter financial results. David Baazov, CEO of 
Amaya Gaming Group Inc., will chair the call. To participate in the call, 
please dial 647-427-7450 or 1-888-231-8191 ten minutes prior to the scheduled 
start of the call. A replay of the conference call will be available until 
Wednesday, June 5, 2013 by calling 416-849-0833 or 1-855-859-2056, reference 
number 76541422. The conference call will be webcast live at


Amaya announced that the five nominees listed in its management information 
circular dated April 29, 2013, namely David Baazov, Daniel Sebag, Gen. Wesley 
Clark Sr., Divyesh (Dave) Gadhia, and Harlan Goodson, were re-elected as 
directors of the Corporation at the Annual General Meeting of Shareholders of 
Amaya Gaming Group Inc. on May 28, 2013. The resolution to reappoint Richter 
S.E.N.C.R.L./L.L.P. as auditors of Amaya Gaming Group Inc. for the ensuing 
year, was carried.


Amaya provides a full suite of gaming products and services including casino, 
poker, sportsbook, platform, lotteries and slot machines. Some of the world's 
largest gaming operators and casinos are powered by Amaya's online, mobile, 
and land-based products. Amaya is present in all major gaming markets in the 
world with offices inNorth America, Latin America andEurope. Amaya 
recently acquired Cryptologic, a pioneer within online casino, Ongame, a 
leader within online poker, and Cadillac Jack, a successful slot machine 
manufacturer. For more information please visit


Certain statements included herein, including those that express management's 
expectations or estimates of our future performance constitute 
"forward-looking statements" within the meaning of applicable securities laws. 
Forward-looking statements are necessarily based upon a number of estimates 
and assumptions that, while considered reasonable by management at this time, 
are inherently subject to significant business, economic and competitive 
uncertainties and contingencies. Investors are cautioned not to put undue 
reliance on forward looking statements. Except as required by law, the 
Corporation does not intend, and undertakes no obligation, to update any 
forward-looking statements to reflect, in particular, new information or 
future events.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that 
term is defined in the policies of the TSX Venture Exchange) accepts 
responsibility for the adequacy or accuracy of this release."

(1) Adjusted EBITDA as defined by the Corporation means earnings before 
interest and financing costs (net of interest income), income taxes, 
depreciation and amortization, stock-based compensation, restructuring and 
other non-recurring costs, and non-controlling interests. Adjusted EBITDA is a 
non-IFRS measure.

For investor or media inquiries, please contact:

Tim Foran TMX Equicom Tel: 416-815-0700 ext. 251 NA toll free: 1-800-385-5451 
ext. 251


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-0- May/28/2013 21:39 GMT

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