Amaya, Inc. (NASDAQ:AYA) Q1 2019 Earnings Conference Call Transcript
May 15, 2019 • 08:30 am ET
Good morning, ladies and gentlemen, and thank you for standing by. At this time, all participants are in a listen-only mode. A question-and-answer session for analysts will follow the formal presentation. As a reminder, this conference is being recorded today, Wednesday, May 15, 2019. Replay details are included in The Stars Group's earnings press release issued earlier this morning.
I will now turn the call over to Vaughan Lewis, Group Director of Investor Relations and Corporate Communications.
Thank you, and good morning. Some of our comments today will contain forward-looking information and statements under applicable securities laws that reflect management's current views with respect to future events. Any such information and statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those projected in the forward-looking information and statements. Undue reliance should not be placed on such information or statements. Please refer to today's press release and the webcast presentation for more information.
During the presentation, we will reference non-IFRS financial measures. For more information about these measures and reconciliations to the nearest IFRS measures, please refer to the appendix of the presentation. Today's earnings press release and presentation will both be available on our website.
I'll now turn it over for our Chief Executive Officer, Rafi Ashkenazi.
Good morning, and thank you for joining us on the call today. With me is Brian Kyle, our CFO, who will provide further details about our first quarter financial results and our outlook for 2019. Before that, I will provide an update on Q1 performance highlights and progress against our strategy.
Overall revenues in Q1 were $580 million, and adjusted EBITDA was $195 million. As you can see in the chart on the left, the main driver of this was a historic low betting net win margin. With a normal 9% margin, we would generally have seen revenue of around $650 million and adjusted EBITDA of around $240 million. While the reported results were adversely impacted by the volatility in net win margin in the short term, this was an exciting quarter from the business development perspective.
As you heard last week, we announced a landmark partnership with FOX Sports to launch FOX Bet into the US betting market, creating the platform to build a leading operator in this exciting market. We continued to execute against our Top 3 strategic priorities for 2019.
First, integration. We have made great progress on integration and increased our synergy targets from $70 million to $100 million. From an execution standpoint, we hosted record online and land-based poker tournaments, and Sky Bet saw record new customer acquisition during the quarter. And so far this year, we have repaid $350 million of our loans.
Moving on to Slide 5. Let me recap our financial results for the quarter. The first quarter of 2019 was a busy quarter for the core Stars International business. With growth in most markets offset by certain market closures and disruption in some of other markets. Overall,