PokerStars operator Amaya lost almost a third of its share value Tuesday after the company lowered its full year revenue guidance for 2015.
Shares in Amaya Inc. lost 32.44 per cent of their value Tuesday, in the process setting a new 52-week low of CAD$19.93 per share, after the company said that the strength of the US dollar has significantly impacted the purchasing power of its customer base.
As a result, the company said it expects full year revenue in the CAD$1,289m to $1,339m range, down by $225m from the upper range of its earlier guidance.
"The general strengthening of the US dollar relative to certain foreign currencies, primarily the Euro, has resulted in an approximate 19 per cent decline in the purchasing power of our customer base and has had a significant negative impact on our revenues, higher than we previously anticipated," said Amaya chief executive David Baazov.
"Other factors negatively impacting our previously anticipated revenues included a recent strategic decision to delay the rollout of significant aspects of our new online sportsbook offering across geographies while we enhance the consumer product experience and complete the product offering, as well as the temporary cessation of our operations in Portugal and Greece.”
On a positive note, the company also revealed that it has reduced its long-term debt by $531m to approximately $2.603bn, with the business generating $364m in operating cash flow from continuing operations over the past 12 months.