Amaya Inc. (TSX:AYA)(NASDAQ:AYA) is the owner of PokerStars and Full Tilt Poker, which combine to control approximately 70% of the online poker market. It has leveraged that advantage to expand into other online gaming markets, particularly casino games and sports betting.
The company has been embroiled in scandal ever since then-CEO David Baazov was accused of funneling insider information to outside investors using his brother as the go-between. Baazov was charged with insider trading, but has not gone to trial yet.
Baazov temporarily stepped aside as CEO in early 2016. He then launched two offers to take his former company private, with both falling through. He was last in the news for selling a portion of his Amaya stock, indicating he has finally begun to move on from the company.
This is good news for shareholders. Baazov’s presence was a distraction, and various investors didn’t take it seriously as long as he was around.
Meanwhile, Amaya is quietly doing a nice job. It posted revenue of $310.4 million U.S. in the fourth quarter, as well as a healthy profit of $0.53. Both numbers beat analyst expectations.
Yearly results were also good, with Amaya posting revenue of $1.07 billion U.S. and a profit of $1.88 per share. Revenue increased 7.8% while profits were up 27.8% versus 2015.
Amaya still faces some challenges. It’s still paying off the debt taken on to acquire PokerStars, which currently stands at $2.49 billion U.S. But shares are cheap on a P/E basis, and it does have the luxury of a commanding market share.
