Amaya Announces its 2010 Third Quarter Financial Results

Initial deployments of Mosino and SMS lottery technologies to generate recurring revenues

MONTREAL, Nov. 17 /CNW Telbec/ - Amaya Gaming Group Inc. (TSX-V:AYA), an entertainment solutions provider for the gaming industry announced today its 2010 third quarter financial results.

Financial Highlights

For the three and nine-month periods ended September 30  (unaudited) (in dollars)
	Q3 2010	Q3 2009	YTD Q3 2010	YTD Q3 2009
Revenues	1,464,817	681,437	3,952,626	3,284,518
Net earnings (loss) and comprehensive income (loss)	274,462	(226,745)	782,276	(362,532)
Basic and diluted earnings ( loss)  per share	$0.01	($0.01)	$0.03	($0.01)

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Other Recent Highlights

• Amaya continues to execute its business strategy as a leading entertainment solutions provider for the gaming industry in new domestic and international markets;
  
  
• Six new agreements signed internationally for the deployment of new entertainment and gaming systems in the last three months;
  
  
• Agreements include:
  
  
• Three contracts for the deployment of over 2,000 Mosino hospitality gaming systems with leading Hotels & Resorts operators in the Caribbean and Dominican Republic (Sirenis Hotels & Resorts, AMHSA Marina Hotels & Resorts and Carigaming Solutions Ltd.);
• A permit to operate a nation-wide Short Message Service (SMS) lottery the Republic of Kenya
• An exclusive contract to provide Short Message Service ("SMS") Lottery ("M-Lotto") services to Uganda Games and Cash (UGC).
• A licensing agreement with Loto-Québec subsidiary, La Société des Bingos du Québec, for the distribution of a proprietary bingo lottery software (Bingo Mundo) to cruise ship operators and gaming operators in various American States;
  
  
• On November 4, 2010, Amaya announced the inauguration of new and larger corporate headquarters in Pointe-Claire to better accommodate the growing needs of the Company;
  
  
• On July 21, 2010, Amaya completed its Initial Public Offering for gross proceeds of $5.0 million.

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Commenting the quarterly results, Mr. David Baazov, President and Chief Executive Officer of Amaya Gaming Group said: "We are extremely pleased with the latest series of agreements recently signed in the past three months. We are right on track with our business plan expectations. These successful initial deployments of our Mosino and SMS Lottery systems in new international markets testify, in our opinion, to the rapid and global adoption of our state-of-the-art systems and entertainment solutions. We firmly believe that the ongoing timely execution of our business strategy will create growing and long lasting value for all our stakeholders."

Financial Results

Amaya posted revenues of $1.46 million for the third quarter of 2010, a 115% increase compared to $0.68 million in the third quarter of 2009. For the nine-month period ended September 30, 2010, total revenues were $3.95 million compared to $3.28 million for the same 2009 period. The increase can be primarily attributed to the first deployment of the Company's Mosino hospitality gaming system and partially offset by the reduction in the level of vendor financing provided on outright sales and efforts to gain traction of its solutions aimed at the hospitability industry and government sectors.

The net earnings for the third quarter of 2010 totaled $274,462, or $0.01 per share, compared to a net loss of $226,745, or a net loss of $0.01 per share for the same 2009 period. The net earnings for the nine-month period ended September 30, 2010, totaled $782,276, or $0.03 per share, compared to a net loss of $362,532 or a net loss of $0.01 per share for the same 2009 period.

Amaya's gross profit was 81% for both three-month periods ending September 2010 and 2009. Gross profit levels achieved in the third quarter of 2010 were primarily driven by the first deployment of the Mosino systems in contrast to the gross profit levels of the third quarter of 2009 which were driven by cost reductions. Gross profit increased by 11%, from 70% to 81%, for the nine-month period ended September 30, 2010 compared to the nine-month period ended September 30, 2009. The increase in gross profit is attributable to cost reductions achieved by acquiring all of the assets of one of its suppliers and electing to conduct both sourcing and final assembly in-house as of June 2009.

Sales and marketing expenses were $0.18 million for the third quarter of 2010, compared to $0.06 million for the same 2009 period while general and administrative expenses were $0.63 million for the third quarter of 2010, compared to $0.41 million for the same 2009 period. The year-over-year increases are mainly attributable to increases in customer-related travel and promotional activities and the growing number of employees and larger premises. For the nine-month period ended September 30, 2010, sales and marketing expenses were $0.56 million, compared to $0.33 million for the corresponding 2009 period while general and administrative expenses were $1.89 million compared to $1.19 million for the same 2009 period. The year-over-year increases are mainly attributable to increases in customer-related travel and promotional activities and an increase in professional fees related to financing activities, growing number of employees and larger premises.

2010 Third Quarter Financial Statements and Management's Discussion and Analysis

The complete financial statements, notes to financial statements and Management's Discussion and Analysis for the three and nine-month period ended September 30, 2010, are available on the SEDAR Website at www.sedar.com.

About Amaya Gaming Group Inc.

Amaya is engaged in the design, development, manufacturing, distribution and sale of technology-based gaming solutions for the regulated gaming industry worldwide. Amaya's solutions are server-based and include a multi-gaming platform ("MGP¹⁰"), hardware devices, such as electronic gaming tables, multi gaming terminals, mobile gaming devices, a proprietary gaming library, a central reporting module ("Central Reporting Module" or "CRM") as well as a Short Message Service (SMS) Lottery System.

Disclaimer in regards to Forward-looking Statements

Certain statements included herein, including those that express management's expectations or estimates of our future performance constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward looking statements. Except as required by law, the Corporation does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

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