Positive financial results emerge after Aussie acquisition
The Stars Group have released the financial results for the second quarter ended June 30th 2018, which show significant gains as a result of contributions from its recent Aussie acquisitions.
Revenue has climbed nearly 35% in the three months ending June 30th, while organic growth saw a 15% growth spurt and adjusted earnings 14.8% rise. Operating income, however, sank 99% to a low of $1m as operation expenses soared following acquisitions.
TSG’s Australian branch made up of the former CrownBet and William Hill Australia saw a positive revenue of $61.3m on online betting, despite an operating loss of $6.5m. On the other hand, international business generated revenue of $350.2m - $217m of which come from poker.
International revenue was up 6.9% year-on-year, although the gain was only 3.8% in constant currency terms.
Quarterly real-money active unique players at TSG’s PokerStars brand were down slightly at 7.3%, despite the launch of shared liquidity between Spain, France and Portugal. The decline is, according to TSG a result of exits from poker markets in Australia and Columbia, as well as disappointing operations in Poland after their crackdown on unlicensed sites.
Online casino verticals, however, have risen 26.3% to just under $102m, likely in response to the launch of 150 new games this year.
Casino operations will now fall under the new CasinoStars name, and will see a rebrand this year, with a revamped website and fresh marketing efforts.
Sports betting revenues are also up, more than doubling to $19.6m after new market launches and World Cup frenzy.
TSG expects great things from the US market’s new legal sports betting rollout, having announced on Friday its deal with Pennsylvania’s Mount Airy casino, which covers online poker, casino and wagering products. TSG also recently announced an expansion of its deal with New Jersey’s Resorts Casino Hotel to include sports betting.
“The Stars Group’s quarterly results reflect both continued organic growth within our International business and the contributions of our Australian acquisitions,” stated Rafi Ashkenazi, The Stars Group’s Chief Executive Officer. “We continued enhancing our products and user experience across all verticals and executing on our cross-selling strategy.”
“We are now focused on the next stage of our transformation—integration,” concluded Mr. Ashkenazi. “While this will be a phased and measured process, we expect that it will prepare us to not only be a leader within the world’s largest regulated markets but to also leverage the strength of our combined platform to take advantage of new opportunities and markets.”
TSG was more restrained in its expectations from its recent launch in India, saying the product was still not ready for prime time, and thus a full marketing push won’t begin in earnest until Q4 at the earliest.
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