source http://finance.yahoo.com/news/amaya-...113000292.html

MONTREAL , Nov. 14, 2014 /CNW/ - Amaya Inc. ("Amaya" or the "Corporation") (AYA.TO) today reported record financial results for the three and nine month periods ended September 30, 2014 demonstrating strong performance in the key areas of Amaya's operations, including the newly acquired PokerStars brand. The results reflect the benefit to shareholders of the recent acquisition including the strong cash flow generation and platform for growth provided by the B2C Business.

Key performance highlights for Q3 2014 include record:

Revenues of $239 million compared to $39 million in Q3 2013;
Adjusted net income of $70 million versus $7 million in Q3 2013;
Diluted adjusted earnings per share of 43 cents compared to 7 cents in Q3 2013;
Adjusted EBITDA¹ of $108 million versus $18 million in 2013; and,
Cash flow from operating activities of $139 million versus $3 million in Q3 2013.
(All amounts are stated in Canadian dollars unless otherwise noted.)

"The acquisition of PokerStars has transformed Amaya and delivered immediate value to our shareholders while setting the stage for additional future growth," said Chairman and CEO David Baazov . "In these early days I could not be happier with the initial performance of the business and the professionalism and expertise of the PokerStars management team. They are implementing strategic plans that leverage exciting, innovative poker variants, new gaming verticals and the mobile platform to increase engagement and new consumer acquisition."

PokerStars is the world's largest online poker site and holds a commanding share of the global online poker market by offering the greatest variety of games, stakes and tournaments for players of all abilities. Full Tilt is also one of the largest online poker sites and in the past year has added games of chance and slots to its online offerings. The combined sites represent over 89 million registered players.

Dat statement

how did amaya get 2 billion or what ever it is to buy pokerstars?

Mostly debt,

Backers.

And they are buying Bwin too... good times.

Omg a business wants to make as much money as possible and doesn't care about it's customer.

didnt they borrow like almost the whole amount like 4.5 billion to purchase PS?

http://www.amayagaming.com/investors/

Click on Q3 financials here for the full report

First glance, what I find important:

Customer deposits: 676 million USD
Cash and cash equivalents: 388 million USD

Unless I am missing something here this means that funds are no longer 100% held. They have an additional 151 million USD in restricted cash (which mostly belongs to the DOJ ) and an additional 408 million in investments but no detail is provided what the investments are, so I assume they are not instruments with a guaranteed value (like a short-term deposit) but a combination of stock and notes which can change value.

I hope I'm missing something .

Something else very interesting:

In the note of cash & cash equivalents the following is listed:

"As at September 30, 2014, an amount of $206,737,000 is reserved to settle customer deposits."

So in the case of a bankruptcy (which wont happen tomorrow don't worry ) we'll get 207/676=about 30,50 cents on the dollar?

note 18 says: "Customer deposit liabilities relate to player deposits which are held segregated in multiple separate bank accounts from those
holding operational funds or working capital. These deposits are included in Current Assets in the Consolidated Statements of
Financial Position under Cash and cash equivalents and Investments. Such investments are short-term highly liquid
investments that are readily convertible to known amounts of cash, including unrestricted short-term bank deposits originally
purchased with maturities of three months or less. Sufficient headroom for player balances to be settled is maintained. Both
PokerStars and Full Tilt hold end user’s deposits, along with winnings plus any bonuses, in trust accounts from which money
may not be removed if it would result in a shortfall of players’ funds."

if deposits are segregated that 676 million represents that amount, the 388 million would just be how much cash they have lying around above that, no?

That's nice to hear, in "Investments" they are talking about buying stock in companies though so it's at least not all short-term bank deposits. Also when I add the 208 million listed in cash & equivalents as 'reserved to settle customer deposits' with the 408 million USD listed under 'investments' I still get only 616 million USD which is lower than total deposits on the website.

Interesting: there's 90 million USD in frequent player points out there. More than i would have guessed .

any company that has or had Paul Leggot involved should be looked at by the FBI

No, note 18 clearly states they are included on the balance sheet. "Customer deposit liabilities relate to player deposits which are held segregated in multiple separate bank accounts from those holding operational funds or working capital. These deposits are included in Current Assets in the Consolidated Statements of Financial Position under Cash and cash equivalents and Investments. "

I guess from that 408 million USD there is an amount larger than 288 million USD (=676-388) that is in short-term deposits and in that way our money is still guaranteed.

But imo it is not clear from these financial statements at all, it makes no sense to me to NOT list the money they have in short-term deposits in the notes given their explanation under customer deposits. Why not show it black on white if you're claiming it to your customers?


EDIT: Also, I think that the 208 million USD listed under cash equivalents relates to money held in accounts that are segregated from operational funds, and the remaining 180 million USD are operational funds. If that is true, there is no way that they are holding all of our money in segregated accounts since 408+208=616<676.

Confusing

he was gone in 2013 before the poker stars acquisition

Fair enough, but if a site is willing to hire him, there are likely other shenanigans going on, thats just my personal opinion

the actual deposits though were only 576 with the balance being the fpp value. If stars go bust pretty sure we can kiss that fpp value goodbye

I suspect you are right. The UKGC rules say that crystalised bonuses should be included in the balance held in trust, this works well for clearing a cash bonus, once it is cleared it is yours and should go in to the trust.

For FPPs and the like it is possible for a firm to give them a nominal value that does not equal what you could buy with them today. They say that this is a matter for terms and conditions of the firm. I have read them and the Stars Ts and Cs (the main, the VIP club and the money/currency exchange one) are silent on this. There is just the we can change end or whatever clause that means they can do as they like, which you would expect as standard in such a ccheme.

The T&Cs give no value to FPPs so I doubt they count as something to go in to trust. They are not clear though, Stars should probably clarify/be asked to clarify but I suspect someone with a few more than me might be the one with the motivation :-)

The VPP position is clearer;
hence no value but they are not clear on FPPs.

excellent thread with real content.

please keep feeding us those juicy infos.

Not mentioned yet, selling ongame (but taking some shares)

The geographic split for stars over 9 months (canadian)
c $50m Americas (24%)
c $138m Europe (65%)
c $23m ROW (10%)

Clear statement that Stars has majority of real money poker - that is over 50% and so easily classified as a global monopoly (25% is the threshold).

But how much goodwill did they lose?

From the footnote it would seem that the entire cash and cash equivalents and the current portion of the investments balances are entirely held in the trust accounts, which is in excess of the $676k. (388k in cash and 369k in investments)

It's also clear from note 18 that the fpps are included in the reserve.

but the line in the cash footnote saying $207k are for player deposits seems weird cus you'd think that that, plus the $368k from investments would get you to the $676k, but it's only $575k.

It says again later that the funds are segregated in teh liquidity footnote

It's a little unclear what the $207k is I think. idk. fwiw I audit financial services companies.