Stars Group revenues grow by 31% in 2018
The Stars group has published its interim trading results for the first half of 2018 showing strong growth across all its major verticals in quarter two (Q2) 2018.
Poker revenues at the group grew by 4% to $217m, while gaming revenues rose by 21% to $102m. Sports grew massively, with a 106% rise on the year to $20m, aided from product improvements, BetStars launching in new markets, and the 2018 FIFA World Cup.
Revenues were aided by the acquisitions of the Australian arms of CrownBet and William Hill. Accounting for those two acquisitions, group revenues were up 31% on the year to $412m, thanks to a $61m revenue contribution from the Australian arm.
That meant gross profit for the quarter was $327m – a rise of 29.8% on the year – and $640 for the first half (H1) of 2018, up 26.2%.
Full year guidance has been updated, with revenues of between $1.995 and $2.145 billion expected for the year.
Speaking about the results, Rafi Ashkenazi, CEO of Stars Group, said:
The Stars Group’s quarterly results reflect both continued organic growth within our International business and the contributions of our Australian acquisitions… We continued enhancing our products and user experience across all verticals and executing on our cross-selling strategy. The continued emergence of our sports betting and casino offerings and the addition of our 2018 acquisitions have transformed our business and greatly enhanced the foundation and diversity of our consolidated revenue base, which will now be nearly equally split among verticals and roughly 75% locally regulated or taxed.– Rafi Ashkenazi, Stars Group CEO
Financial highlights included a consolidation of total revenues and betting revenues taken internationally, which grew significantly thanks to increases in stakes and betting net win margins.
Operational highlights included the acquisition of CrownBet and William Hill Australia and the emergence of US sports betting. The group has either extended or entered new partnership agreements with US resorts and casinos, meaning it is well positioned to take advantage of the US market.
The Stars Group is in the process of acquiring Sky Betting and Gaming, with the group currently waiting on CMA approval.
The group stated that Sky Bet will be central to its aims in the newly opened US sports betting market.