Amaya says it wants to move its HQ to Toronto, change name to The Stars Group

The Amaya Gaming Group headquarters are seen on June 13, 2014 in Montreal. (Ryan Remiorz / THE CANADIAN PRESS)

MONTREAL -- The owner of PokerStars and other online gaming businesses is changing its corporate name and relocating to Toronto as it continues to evolve after facing tough times last year.

Montreal-based Amaya (TSX:AYA) says it will become The Stars Group Inc. after shareholders give their approval next month and move its head office after it hires a replacement for its chief financial officer, who has announced his retirement.

Chief executive Rafi Ashkenazi said the company is making the changes as it continues to grow and alter its gaming mix.

"As we undergo this transformation, we look to embrace the future of our business while also recognizing the incredible consumer goodwill and loyalty associated with our primary brand," he said Friday during a conference call.

Ashkenazi, who replaced founding CEO David Baazov last year, has been beefing up Amaya's management team, paying down debt and reducing its exposure to professional online-poker players.

Poker made up 69 per cent to Amaya revenues in this year's first quarter, compared to 75 per cent a year earlier. Online casino games and sports betting grew to 27 per cent from 21 per cent in the first quarter of 2016.

He just hired a William Hill executive to drive mergers and acquisitions and is in the final stages of hiring a successor to CFO Daniel Sebag, who announced his retirement in January. His replacement will be located in Toronto.

Suburban Montreal has been Amaya's headquarters since Baazov founded it in 2004. It became the world's largest publicly listed online poker brand a decade later after purchasing the PokerStars parent for US$4.9 billion.

In the first quarter of 2017, Amaya beat analyst estimates with revenue at US$317.32 million, up 10 per cent from last year.

It earned US$66.75 million or 33 cents per diluted share in the three months ended March 31, up from US$55.5 million or 28 cents per share a year earlier.

Adjusted profits were 56 cents per share, four cents above forecasts by analysts polled by Thomson Reuters.

Kevin Wright of Canaccord Genuity said Amaya appears to be in solid shape as its poker business has stabilized with the move to focus on casual players instead of professional gamers.