The Stars Group exhibits growth in every aspect.
The Canadian gaming company The Stars Group (TSG) has revealed its financial results for the first quarter of 2018, boasting impressive growth in all business areas. Based in Toronto, the multi-billion-dollar group has a diverse brand portfolio with no problematic brands. Expansion worldwide is planned for this year.
At the end of the first quarter on March 31, 2018, TSG stated an overall increase of 23.8% compared to Q1 2017. Each division - poker, casino, and sports betting - is experiencing positive growth.
Considering that there had been a lingering stagnation in the previous financial year, TSG is now reporting growth in its core business. Real money poker revenue has seen a 2.3% jump to USD 245.9 million since the start of 2018. Since Q1 2017, the online poker giant has recorded a progression of 12.4%.
On the other hand, both casino and sports betting generated a total revenue of USD 134.5 million, marking a remarkable growth of 55%. The total revenue shot up by 23%, leaping from USD 317.3 million in Q1 2017 to approximately USD 393 million (EUR 329.3 million).
The Group's net profit increased by more than 13% to USD 74.4 million. The "adjusted net profit" - which is a more accurate representation after removing one-off and special charges - has also climbed by 22.8% in just one year, rising from USD 113.4 million to USD 139.2 million. Additionally, adjusted net profit per ordinary share has risen by 17.9% to around USD 0.66.
The Stars Group Inc., a gambling dynasty, was founded in Toronto in 2001 and is currently listed on both the Toronto Stock Exchange (TSX) and the Nasdaq.
Expansion Through Organic Means
The remarkable Q1 2018 numbers confirm CEO Rafi Ashkenazi's "organic growth plan" from 2017, which he insists will continue. The ceaseless expansion of poker, casino, and sports betting is largely due to the "Stars Rewards" rewards program introduced in 2017, a customer-oriented loyalty program.
Moreover, the company's "customer focus" is what CEO Ashkenazi believes differentiates TSG from its competitors, prioritizing continuous improvements in both communication channels and products to match consumer expectations. However, the CEO is not content with current achievements and has even bolder plans:
"We will continue with the organic growth plan, and also complement that with the acquisition of CrownBet and William Hill in Australia as well as the expected completion of the acquisition of Sky Betting & Gaming."
Back in April, TSG acquired a majority stake in Australian betting operator CrownBet in a deal worth more than AUD 560 million. Additionally, it took over the Australian branch of UK bookmaker William Hill. This makes TSG one of Australia's largest betting providers.
Since the takeover of British bookmaker Sky Bet was announced concurrently - a deal valued at USD 4.7 billion, set to be completed later this year - TSG can claim the title of the world's biggest publicly listed gambling company, with a current market value of over USD 4 billion.
Pushing for World Market Leadership
"These acquisitions will help diversify our revenue, broaden our reach to regulated markets, and transform our combined sports betting business into a secondary customer acquisition channel," says CEO Ashkenazi, who is clearly striving for world betting market leadership.
India is one of the targeted markets for TSG's resilient betting expansion. Additionally, the company is thought to be eyeing the USA as a potential market. Presently, sports betting is lawful in only four states, but the US Supreme Court is currently weighing a case from New Jersey that could potentially invalidate the ban on sports betting.
If the court rules in favor of New Jersey, then sports betting would be legal nationwide, creating a vast market for the industry. And TSG seems to be prepared, likely planning to capitalize on this new market.
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Source: www.onlinecasinosdeutschland.com
