Online Poker Boosts Amaya; Cadillac Jack For Sale

Canada’s Amaya Gaming reported that its recent acquisition of PokerStars and Full Tilt have boosted the company’s bottom line, thanks to significant year-on-year revenue and income for the poker sites in the first half of 2014.

Amaya reports that Oldford Group, the holding company of the poker brands the company bought this year from Rational Group, generated net income of $218.4 million for the first half, up from $189.9 million for the same period last year. Revenues were $567.9 million, up from $545.9 million last year.

“We’re very pleased with the performance of PokerStars and Full Tilt in 2014,” said Amaya CEO David Baazov. “The core poker business continued to grow during the fist half of the year, and recorded strong cash flow.”

Meanwhile, the company announced that it has initiated a strategic review process to explore alternatives for Amaya’s B2B land-based slot manufacturer, Cadillac Jack Inc. The strategic review will consider various alternatives for the company identified by Amaya’s and Cadillac Jack’s executive management, with the fundamental objective of expediting Cadillac Jack’s growth strategy and maximizing value for Amaya’s shareholders.

“In light of recent consolidation within the gaming machine supplier industry, we believe that this is an appropriate time to review and evaluate potential strategic alternatives for Cadillac Jack that may further maximize value for our shareholders,” Baazov said.

Amaya has engaged Macquarie Capital and Deutsche Bank Securities Inc. as co-financial advisers to assist the company with the strategic review of Cadillac Jack.