Post by
petrofac on Jan 22, 2017 10:29pm
interesting take from Canaccord on AMAYA
Amaya* (AYA : TSX : $18.31), Net Change: 0.57, % Change: 3.21%, Volume: 268,927 WINNING. Amaya Gaming provided updated FY2016E guidance following a calendar year that was absent of updates amid potential M&A. The company looks set to exceed consensus estimates across the board which should provide confidence to the Street and investors that the company is executing on its growth strategy. Of particular interest is the growth in active users in the casino vertical which grew to 648K Quarterly Real-Money Active Uniques (QAUs). This was ahead of Canaccord Genuity Tech Analyst Kevin Wright’s 628K estimate which at first blush looks impressive, and while the company did not break out its financial performance by segment Wright would be not be surprised if initiatives within the business are helping to slow poker erosion and accelerate online casino performance. Throughout FY2016, Amaya management held back on updating its financial outlook as the company was the target of potential M&A. In the absence of takeover offers, management has updated the market on its performance which shows that the company is performing better than the Street expects. The midpoint of guidance is revenue of $1,556M (consensus $1,149M), adjusted EBITDA $524M (consensus $507M) and adjusted diluted EPS of $1.90 (consensus $1.76). The company also announced that with the retirement of Daniel Sebag from the CFO position. AYA has commenced an executive search for his successor with a change in management expected later this year. Wright is encouraged by the better-than-expected financial performance and sees changes in the CFO seat as another opportunity for CEO Rafi Ashkenazi to put his mark on the business.
Comment by
KaeKam44 on Jan 23, 2017 12:32pm
This bodes well for us in NYX. The ONLINE Vertical is getting huge and so we should benefit from this immensely. Looks bright!!