server and network-based gaming specialist Amaya Gaming Group has released its financial results for the first quarter of 2011 showing a 23 percent year-on-year decrease in revenues for the three-month period to $1.14 million.
Based in suburban Montreal, Amaya is currently in the process of purchasing gambling software provider Chartwell Technology Incorporated, which is the parent firm for Chartwell Games (International) Limited, by way of an ‘arm’s length transaction’ for approximately $22.77 million and raised $10.23 million last month to help fund this acquisition following the closing of a bought deal private placement of 3.3 million common shares.
Amaya stated that the decrease in revenues for the first quarter of 2011 reflected its ‘efforts to gain traction of its solutions aimed at the hospitality and government sectors’ while revealing that sales and marketing expenses for the period swelled by over 800 percent year-on-year to $1.92 million. It also disclosed that its general and administrative expenses rose almost 185 percent when compared to the same period in 2010 to $1.42 million and declared that these increases were ‘mainly attributable’ to advertising, marketing and prize pool funding for its new operation in Kenya in addition to its growing employee base and the costs associated with running a fully staffed venture in Africa.
The firm declared that net loss for the first quarter of the year totalled just over $1.82 million, which compared to profits of $449,063 for the same period in 2010, with its gross profit percentage growing by 16 percent year-on-year to 99 percent ‘primarily driven by software licensing agreements’.