The Stars Group Can Be Pleased with Its Q1 Results, Says the Latest Report
The Canadian gaming and online gambling company The Stars Group has posted its results for the first quarter of the year, revealing a strong growth.
These excellent results represent an excellent introduction to a significant expansion of the company’s operations, products, services and overall business, which is scheduled to take place in the coming period.
The Toronto-headquartered gaming giant has proudly announced growth across its key performance indicators, recording $393 million in revenues during the three-month period ending on March 31, which is an increase of 23% when compared to the corresponding period of last year.
A Great Way to Start the Year
According to the Group’s governance, the „Stars Rewards“ loyalty program was one of the biggest driving forces when it came to the rise in player engagement. The program, made available to a number of customers in different territories, has been a part of the company’s „diversification strategy“.
PokerStars division was also on the rise, ending the year’s first quarter with a revenue of $245.9 million – 12% more than in the same period of 2017. The Group’s combined online casino and sportsbooks revenues recorded a jump of 55% to $134.5 million. Continued improvements in the Group’s casino and sportsbook offer, positive foreign exchange fluctuations and the acquisition of the Australian CrownBet were cited as the main reason behind the increase in revenue.
Commenting on the company’s first-quarter results, Chief Executive Officer at The Stars Group Rafi Ashkenazi said the strong results in Q1 2018 continued the firm’s organic growth trajectory. He added the Group’s governance was pleased with the performance of each of the verticals, poker, casino, and sportsbook, which were benefiting not only from the continued success of Stars Reward but also from the strategy of focusing on the customers and continued improvements to the Group’s product offerings.
The Nasdaq and the Toronto Stock Exchange traded company has announced that its net earnings have recorded an increase of 13.9% to $74 million, with diluted net earnings per common share at $0.36. At the same time, the adjusted EBITDA reached $175 million.
Expect More in the Coming Months
Ashkenazi also stated the exceptional foundation of the company’s business would be complemented by the acquisition of CrownBet and William Hill Australia, along with the purchase of the Sky Betting & Gaming.
The Group’s CEO said these acquisitions would help diversify the firm’s revenue base, increase its exposure to regulated markets and transform its sportsbook into a second customer acquisition channel. He added the additions would accelerate not only the organic growth but also its progress towards realizing the Group’s vision of becoming the world’s favourite online gaming destination.
The Stars Group has also announced it is planning to deliver revised full-year financial guidance, which will include its upcoming acquisitions of Crown Bet, William Hill Australia, and Sky Betting & Gaming. According to available information, the revised guidance will be provided in August, after the company reveals its results for the year’s second quarter.
- SBC News: https://www.sbcnews.co.uk/sportsbook/2018/05/10/stars-group-shows-commercial-muscle-ahead-monster-enlargement/
- PR Newswire: https://www.prnewswire.com/news-releases/the-stars-group-reports-first-quarter-2018-results-300646277.html
- The Stars Group: http://www.starsgroup.com/the-stars-group/investor-relations/financial-and-corporate-information
- iGaming Business: http://www.igamingbusiness.com/news/stars-group-reveals-widespread-financial-growth-q1