The poker stars Amaya is a happy company after recording an increase in its revenue collection throughout 2016 stretching to Q4.
According to the Amaya top management, the good performance throughout the mentioned period was due to ‘proactive changes’ that occurred to poker ecosystem.
According to Rafi Ashkenazi, the Amaya CEO, the increase in revenue collection but falling slightly low on profits is strange. He however acknowledged that most gambling resorts throughout the region made real money online casino gambling sites a goldmine.
He confirmed that for the past several years, his company has had an increase in revenue collection from its poker section that has been consistently at 5.9%.
“Revenues have risen over the past several years between 5.9% and 7.8%. That means in real figures, in Q4 alone, we’ve been able to collect from $310 million in revenues to approximately 1.5 billion,” said CEO Rafi.
Nonetheless, Rafi conceded that although Amaya managed to increase the amount they collected, not all things were smooth. He said that in terms of gross profits, Amaya missed to attain the proposed projection though slightly.
“We had projected that if things could go well with us, the number of cents per share would be 56 or above. Unfortunately, things did not turn out as we thought. We did not manage to hit the target. In fact, at some point, some of us thought that we would even surpass our projection even if it is on a smaller margin. We were wrong. We missed 3 cents to trade at 53 instead of the projected 56 cents.
Some of the reasons why there was a surge in revenue but slight fall in gross profit can be attributed to changes in the PokerStars.
The changes especially those done to improve its ‘ecosystem’ that were done two years ago in 2015, made it difficult for some players, most of whom were potential players to boycott from participating.
In order to balance the poker ecosystem, some players in the industry such as Amaya are trying hard to bring back the fame that was once associated with poker playing.
One way they are doing that is by introducing a variety of recreational jackpot just to attract or bring back some of the potential players who in turn will help the gaming facility increase gross profits as well as revenue collection.
So, even as gaming is waning in most international markets, Amaya is wary of the outcome.
The poker sector brought in 70% of all revenue collected in Q4. This was an 8% fall from the previous quarter.