Five things we learned from Amayaâs Q2 results
Toronto-listed firm to dial down BetStars marketing spend while it improves UX
Amayaâs Q2 financial report was headlined by a 10% rise in revenues and the elevation of Rafi Ashkenazi from interim to permanent CEO following the departure of David Baazov.
However, the accompanying earnings call also included several insights into the future of the business as it continues its expansion into new territories and transitions away from the core PokerStars product.
1. Amaya will re-enter the regulated Portugal market this quarter
Ashkenazi said the operator could be live in Portugal with sportsbook and poker products by the end of the quarter.
âWe have pretty much finalised everything on our end and it’s now in the amalgamation process,â said Ashkenazi on the call. âSo we really hope that we will be able to operate already in this quarter.â
He said the poker product would be initially functioning as a closed liquidity pool, but added: âWe are quite positive about open liquidity opportunities by the beginning of next year.â
2. Amaya has plans to expand into other markets as well
Ashkenazi described the US as Amayaâs biggest opportunity for poker, saying he had been cheered by the positive momentum seen in real-money legislative pushes in California, Pennsylvania, and New York.
He said it was âhard to predict when or where the next breakthrough might come, but we remain optimistic we will be thereâ.
When asked about other opportunities, Ashkenazi said Amaya was planning to be operational under both of the new regulatory regimes being introduced next year in the Czech Republic and the Netherlands.
3. Online casino revenue slipped back sequentially
Casino revenues were lower than Q1 at around $54m, despite the introduction of Playtech slots, with Ashkenazi attributing the slowdown to seasonality and a Euro 2016 hangover.
âWe had fewer uniques on site playing poker and that affected casino revenues, because it is a cross-sell product and we donât market it externally,â Ashkenazi said.
He added that he expected the vertical to bounce back in Q3 with the introduction of more tier-one providers, including progressive slot games, and a dedicated mobile casino app.
The push for recreational players is having a positive impact
Ashkenazi claimed changes to the rakeback scheme had boosted revenues by about 4%, although some of that cash was reinvested in R&D and marketing.
4. Poker revenues were flat year-on-year in the quarter, after falling 11% in Q1.
The chief exec added: âSo far there has been virtually no negative revenue impact from high-volume players as a result of the changes and we’re seeing the desired shifts in customer behaviour that create a more positive poker economy.
âAs a result, the bankrolls of new and recreational players are lasting longer, which we believe will lead to increased retention, greater engagement with our site across all verticals and more frequent deposits, improving our lifetime value from these customers.â
5. The company will temporarily take a âmore measured approachâ to marketing its BetStars sportsbook
The BetStars brand generated a 25% increase in sequential revenues to $6.6m compared to Q1, buoyed by increased marketing spend and geographic expansion into Italy and France.
However Ashkenazi said the ad spend would be slowed down in Q3, with the focus instead on âimproving the competitiveness of the productâ under newly appointed BetStars MD Zeno Ossko.
Ashkenazi also promised a completely revamped âversion 2.0â of the BetStars app by the end of the year with upgraded âfunction and overall user experienceâ.