Amaya Gaming Group announces its 2010 second quarter financial results

MONTREAL, Aug. 30 /CNW Telbec/ - Amaya Gaming Group Inc. (AYA on the TSX Venture Exchange), a pioneer in the field of electronic devices and software for the gaming industry announced today its 2010 second quarter financial results.

Financial Highlights

    
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    For the three and six-month periods ended June 30  (unaudited) (in
    dollars)
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                        Q2 2010        Q2 2009    YTD Q2 2010    YTD Q2 2009
                -------------------------------------------------------------
    Revenues          1,007,518      1,211,184      2,487,809      2,603,081
    Net earnings
    (loss)and
     comprehensive
     income (loss)       58,751       (374,819)       507,814       (135,787)
    Basic and
     diluted
     earnings
    (loss)per
     share                $0.00         ($0.03)         $0.03         ($0.01)
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    Other Recent Highlights

        - On July 21, 2010, Amaya Gaming Group 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 pleased to have successfully completed our IPO and our first quarter as a publicly traded company. We are also pleased with the progress accomplished so far in the improvement of our gross profit as a result of our cost reduction initiatives. We believe to be well positioned to capitalize on all market opportunities as we continue to execute on our business plan. "

Financial Results

Amaya posted revenues of $1.0 million for the second quarter of 2010, a 17% decrease compared to $1.21 million in the second quarter of 2009. For the six-month period ended June 30, 2010, total revenues were $2.49 million compared to $2.60 million for the same 2009 period. The decline can be attributed to the Company's emphasis on reducing 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 second quarter of 2010 totaled $58,751, or $0.00 per share, compared to a net loss of $374,819, or a net loss of $0.03 per share for the same 2009 period. The net earnings for the six-month period ended June 30, 2010, totaled $507,814, or $0.03 per share, compared to a net loss of $135,787 or a net loss of $0.01 per share for the same 2009 period.

Amaya's gross profit increased by 12 percentage point, from 70% to 82%, for the second quarter of 2010 compared to the second quarter of 2009. Gross profit increased by 13 percentage points, from 67% to 81%, for the six-month period ended June 30, 2010 compared to the six-month period ended June 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.

Selling and administrative expenses were $0.96 million for the second quarter of 2010, compared to $0.65 million for the same 2009 period. For the six-month period ended June 30, 2010, selling and administrative expenses were $1.63 million, compared to $1.05 million for the corresponding 2009 period. The year-over-year increase is mainly attributable to increases in customer-related travel, promotional activities and professional fees related to financing activities.

2010 Second 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 six-month period ended June 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, hardware devices, a proprietary gaming library, and a central reporting module that protects the integrity of an entire jurisdiction's gaming operations by tracking gaming revenue for auditing and tax purposes. Amaya's solutions are designed to improve gaming operator profitability, productivity and security while providing players with popular and cutting-edge gaming entertainment content and maximizing their playing experience. Amaya continues to develop gaming solutions and services for the markets it currently serves as well as to address new domestic and international opportunities.

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."

%SEDAR: 00029939EF

For further information: Mr. David Baazov, President and Chief Executive Officer, Amaya Gaming Group Inc., North America: 1-866-744-3122, Worldwide: 1-514-744-3122, http://www.amayagaming.com