The Stars Group Publishes Q2 Figures, Reveals Strong Growth
Canadian gaming giant The Stars Group has announced its results for the second quarter of the year, revealing what analysts have described as ‘impressive momentum’.
A very busy period of mergers and acquisitions has been cited as the main driving force behind the reported yearly increase in revenue of 34.8%, and even better news is the growth trend will not end soon.
Numbers Going Up
The Toronto-headquartered company recorded more than $412 million in revenue during the three-month period ending on June 30, 2018. According to available information, the group’s earnings before interest, taxation, depreciation, and amortization (EBITDA) went up by 15% to $168 million.
Commenting on the results, The Stars Group’s Chief Executive Officer Rafi Ashkenazi said the group’s quarterly results reflected both continued organic growth within the firm’s international business and the contributions of its Australian acquisitions.
He added the continued emergence of the group’s sports betting and casino offerings and the addition of the 2018 acquisitions had transformed the company’s business and had greatly enhanced the foundation and diversity of its consolidated revenue base. Ashkenazi also pointed out the revenue base would now be nearly equally split among verticals and roughly 75% locally regulated or taxed.
The company’s international segment was very strong during this period, recording a 15% rise in revenue to a total of $350 million across all major verticals.
The acquisitions of CrownBet and Sky Betting and Gaming demonstrate the importance the international segment has for the company. The transformation of the group itself, triggered by these moves is seen in its revised guidance which reveals a growth of 77% to an annualised revenue rate of $2.5 billion.
The vast majority of the revenue has been generated by betting, while only a small portion originated from poker.
Now It’s Time for Integration
The Stars Group will now focus on integration, which has been referred to as the next stage of the company’s transformation.
In the meantime, all segments have recorded growth during the year’s second quarter: poker by 7% to $271 million, casino by 26% to $102 million, while betting went up by 5.4% to 20 million. It’s clear these numbers, although driven by M&A, show impressive momentum.
The Stars Group has the potential to make the most out of the recent repeal of the PASPA Act in the United States, and establish a strong market position in the neighbouring country, especially in New Jersey and Pennsylvania. With the launch of sports betting in the Garden State, and with an established casino and poker presence in the Commonwealth, the group could likely expand its footprint.
With its “bad actor” suspension in Nevada about to be lifted soon, The Stars Group could achieve big success in the United States in the coming period.
About Stars Group
Founded as Amaya Inc. 17 years ago, The Stars Group produces and offers online gaming products and services including poker, casino, and sportsbook through its online gaming division, Stars Interactive. These online brands are PokerStars, PokerStars Casino, BetStars and Full Tilt Poker and more.