The Stars Group Benefits From Work Ethic

Most of us still recall where we were when it was announced that one of the largest acquisition takeovers in the history of the gambling and iGaming industries was imminent; the Stars Group was on the verge of closing a deal that would make it the new owner of Sky Betting and Gaming (SBG) in the United Kingdom.

Not only was it a massive financial undertaking with an estimated value of $4.7 billion, but it also marked a significant transition in the Stars Group’s power and market presence. Now, less than five months after the opening of the celebratory champagne, it appears there is even more to celebrate. Sky Betting & Gaming, coupled with the subsequent acquisition of Australia’s BetEasy, has undoubtedly contributed to the group’s record-breaking revenue income for 2018.


Profit To Be Proud Of

According to the audited financial statements for the fourth quarter, total revenue income soared by an astounding 81% for that quarter alone. 2018 as a whole saw a 55% increase in revenue, which is virtually unprecedented in the industry, particularly given the recent and current economic climate.


On the other hand, acquiring two significant entities was costly, and this resulted in a 142% decline in net income. Adjusted EBIDTA however helped to level the playing field by increasing by 30%.


Next Stop: United States

Upon closer inspection, the two newly acquired operators contributed significantly to the overall performance. The revenue increase was distributed as follows: 54% of revenue was generated by Stars brands, 35% by Sky Betting & Gaming, and 11% by BetEasy.


According to Rafi Ashkenazi, chief executive officer of Stars Group, 2018 was a significant year for the company. In addition to the new acquisitions, the group expanded its licensed areas of jurisdiction to a total of 21.


The operator has stated that it anticipates 2019 to be similar to 2018, and that its presence on the US market will now receive renewed attention.

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