Stars Group H1 poker revenue falls as Sky Bet drives sportsbook growth

By Tim Poole

Stars Group saw its total consolidated revenue grow 51% year-on-year for H1 2019 to $1.22bn.

However, $432m of Stars Group’s revenue came from Sky Betting & Gaming, which was acquired in July 2018; this means total revenue would have shrunk were it not for the purchase of the UK operator.

Consequently, online sports betting was Stars Group’s largest product vertical, increasing from 20% of the company's total revenue to 36%; by contrast, online casino dropped from 31% of total revenue to 25%, while online poker shrunk significantly from 53% to 30%.

International poker revenue fell 12% to $405.6m, due to adverse foreign exchange fluctuations and "continued disruptions and regulatory headwinds in certain markets."

Operating income for Stars Group rose 35% to $155.5m, while net earnings grew from an $80.5m loss to $32.3m; adjusted EBITDA increased 26% to $432m.

Nevertheless, adjusted net earnings fell 10% to $243m and the operator has updated its full-year guidance by marginally reducing revenue, adjusted EBITDA and adjusted diluted net earnings per share expectations.

Rafi Ashkenazi, Stars Group CEO, said: "The second quarter underpinned the success of last year's acquisitions, particularly with the record performance of Sky Betting & Gaming and our increasing product and geographic diversification.

“This year has been and remains a year of integration, execution and debt reduction."


NEWS SPONSOR

More News

The Western Australian government will hold a royal commission to examine Crown Perth’s suitability to continue operating. The decision to look into the operations of the Burswood casino and resort comes soon...




This article originally appeared in the January/February edition of Gambling Insider magazine: UK gambling regulation expert Steve Donoughue has some strong views about the Gambling Commission which many may disagree with....