As the Euro Cup begins, the official launch for Amaya’s (Amaya Stock Quote, Chart, News: TSX:AYA) BetStars in France is imminent, and Cantor Fitzgerald Canada analyst Ralph Garcea says he expects the division to generate “robust” numbers.
Garcea notes that Amaya now has licenses to operate BetStars, the sports betting brand of PokerStars, in the UK, Italy, Spain and France -all of the largest markets. The analyst says the company’s aggressive growth strategy is paying off.
“AYA is in a business where marketing spend turns into real leverage dollars,” says Garcea. “Recent campaigns include Spin & Bet, Knockout Poker, and 100% bonus up to $600. The ROI on each marketing campaign “has been improving over the past 5 months”. The motto seems to be “spend money to make money”.
In late May, BetStars launched in Italy. The company said the customer funnel to the product is a natural one.
“There’s huge crossover between poker consumers and sports betting fans and BetStars provides a safe, secure, convenient and trusted environment to place sports bets,” said Amaya VP of corporate communications Eric Hollreiser. “Italian sports fans find betting enhances their love of the game as they put their wits, strategy and judgment to the test.”
In a research update to clients today, Garcea maintained his “Buy” rating and one-year price target of (C) $45.00/(US) $36.00 a share on Amaya.
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